Marsh last year bought the site, located at College Avenue and 54th Street, with the intentions of opening a new grocery there. But two months ago, Marsh said it was halting work on the project because of low earnings.

Addressing rumors that Marsh has sold the site, the spokeswoman said, "We have no deal."

Jim Garrettson, of the Meridian Kessler Neighborhood Association, said he has heard talk that a deal is imminent.

"We've heard essentially that it's been sold, although we haven't heard to whom or precisely for what it's been sold," Garrettson told RTV6's Ben Morriston.

Atlas, a specialty grocery store, closed in 2002 after operating for 55 years. Area residents have said its closure left an emptiness in the neighborhood. Some think a new supermarket should replace the old one.

"It's really important for me to have a food grocery-type store over there because there's just no access to high-quality groceries in this part of town," area resident Kirsten Eamon said Tuesday.

Some have expressed interest in what is known as a mixed use for the site. That would involve retail on the first floor and residences upstairs.

"That would be nice thing in the neighborhood," said the neighborhood association's Novella Nedeff.

Matt Elliott, who owns the News Cafe across the street from the Atlas site, sounded as if he would agree.

"I think a light retail and maybe light residential mixed use aspect would be nice," Elliott said. "I think it'd be good for our business. It'd be good for the corner."