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A deal to rescue the site of Ontario's first parliament from becoming a car dealership is almost complete, negotiators say.

"As long as everyone continues to be reasonable, we'll have a deal," said Toronto City Councillor Pam McConnell, whose ward includes the site. "It would be good for heritage, for the province and for the city."

Her comments came after city council instructed officials to pursue discussions with the private owners of 265 Front St. East -- the proposed site of a Porsche dealership -- to settle a potential land swap among the parties.

Stephen Diamond, a lawyer with the McCarthy Tétrault firm who is representing Downtown Fine Cars, is also hopeful a deal will be reached early next month.

"We're in better shape than we have ever been," he said, now that the talks are focused on specific parcels of land near the site close to the intersection of Front Street East and Berkeley Street.

Beneath the surface of the asphalt lot are the charred remains of the original Parliament of Upper Canada that dates to 1798. In the War of 1812, invading U.S. troops burned down the buildings.

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