WINOOSKI, Vt. — The developer of a stalled project to build a hotel and restaurant in Winooski is negotiating with a group of downtown businesses this week to resolve concerns.

Winooski Hotel Group LLC wants to build it on the south end of the city’s traffic circle. The Winooski Downtown Redevelopment Association filed a lawsuit against the developer in January, claiming the hotel would illegally subvert several key goals for downtown.

President Diane Finnigan said Tuesday the project’s reliance on off-site valet parking remains an issue.

An attorney for the association confirmed Wednesday to The Burlington Free Press ( ) developer Adam Dubroff’s legal team has been in touch with him to explore an out-of-court settlement.

A review of the project by Vermont’s Act 250 Commission has been postponed until the case is decided.

Information from: The Burlington Free Press,