Batsakes Hat Shop, a dentist and a record shop agreed Thursday to leave a building at Sixth and Walnut that the city of Cincinnati plans to demolish in February to make room for a new $33.9 million Contemporary Arts Center.

        The tenants and city attorneys reached the tentative deal during a Hamilton County Common Pleas Court hearing. The deal calls for the city to buy the building at fair market value and pay a total $235,000 for the tenants to move out by Jan. 31.

        The agreement came the same day that CAC architects updated the city's Urban Design Review Board on minor changes that will raise project costs by $3.6 million.

        The design changes and court battle over the property acquisition will delay the center's opening to 2003.

        “This clears the way for the Contemporary Arts Center project to move for ward,” said Pete Heile, deputy city solicitor.

        Mr. Heile would not say what both parties agree “fair market value” is for the building until a judge approves the order, likely today. Robert Manley, the attorney representing the building owner, could not be reached Thursday.

        As part of the agreement, Batsakes Hat Shop, Metro Records Inc. and a dentist each will get a $20,000 stipend to move out by Jan. 31. Batsakes, which has operated its business at Sixth and Walnut for nine decades, also will get a $175,000 low-interest loan to establish a new store a block away near the Crowne Plaza Hotel.

        The city will take control of the property and handle any environmental cleanup needed. The city awarded a $150,000 contract to King Wrecking of Cincinnati to knock down the Batsakes building and two adjacent structures the city already acquired.

        The space will clear the way for an 80,000-square-foot grayish, metallic building circled by a sidewalk of partly colored concrete — the latest version of the center unveiled by architects Thursday.

        The CAC board has approved two minor changes to give the Lois and Richard Rosenthal Center for Contemporary Art more performance and display space.

        Urban Design Review Board members were impressed by the latest version, offering only minor design suggestions.

        “Unless you stub your toe (before or during construction), you have a fantastic building,” said David Niland, an architect and board member. “It may be the best building to date” designed by London architect Zaha Hadid.

        The CAC has stepped up a fund-raising campaign to pay for the additional costs. So far, the CAC has raised $32.1 million from government, board members, corporations, foundations and individual donors.

        The spring groundbreaking won't be delayed if the arts center doesn't have enough funds committed to cover projected costs.

        “We have a campaign targeting various individuals that has been very successful,” said Michelle Padilla, a CAC spokeswoman.

        The Rosenthals, local arts philanthropists, have contributed $5 million. The city already paid $4.3 million in property acquisition costs, a figure that will increase with the agreement to acquire the Batsakes building.

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