The City Council nudged along Greenfire Development's $4.2-million incentive package for a downtown hotel Thursday, setting a Sept. 20 public hearing on the deal.

Another city/Greenfire proposition, however, went back to the drawing board.

At the start of Thursday's council work session, City Manager Tom Bonfield pulled a proposed lease of a Greenfire property off the agenda, saying it was being referred back to the city administration.

"Much to my surprise, I was informed Greenfire had not agreed [to the deal] when I got to the office this morning," Bonfield said after the meeting. He said he had no idea what the problem was.

"It doesn't look like a major issue," said Greenfire partner Carl Webb. "We've been working with the city ... for quite some time to get it pulled together."

According to an Aug. 13 internal city memo, the deal would have the city lease 3,251 square feet on the ground floor of Greenfire's building at 112 W. Parrish St. for two years for $110,534.

The space would be used for a “Parrish Street Common Room”: a public-event venue with a theme commemorating Parrish Street’s history as a center for black-owned financial enterprise. It was proposed in the 2004 consultant’s report, “A New Era for Parrish Street,” on invigorating economic activity on the street at the heart of downtown Durham.

The first year’s rent would cover Greenfire’s expense to remodel the ground floor to city specifications. Money would come from the city’s Downtown Revitalization Fund.

Bonfield said he thought everything was set. Webb said, "We did not have everything solidified." Webb said.

Bonfield said, "It takes two parties to make a deal."