Ballynahinch Regeneration Ltd initiated the scheme, at The Square, in the heart of the County Down town over two years ago.
The project was aimed at developing a new facility, facing the town's market house.
But a court injunction in May 2006 halted the scheme in its tracks. It is understood the ruling was in relation to a right-of-way issue.
However, Down District Council could be about to throw the development a much-needed lifeline.
A council committee has learned that Ballynahinch Regeneration will have difficulty completing the project in the timeframe proposed by financers.
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Now elected representatives have agreed to set up a meeting with the developers to find a solution to the current dilemma.
Council Chief Executive John McGrillen said the group had been behind a number of "visible regeneration projects" in the town, including the Market House.
"They were set to develop the second phase of The Square and had demolished a number of properties and were seeking funding," said Mr McGrillen.
Mr McGrillen said he recognised the scheme has hit difficulties, including a court injunction.
He said: "At one stage the group considered selling the site when the property market was buoyant, but that may no longer be the case."
"The group wants to meet with Council to see what could be best for the people of Ballynahinch," added Mr McGrillen.
Councillor Mickey Coogan said a meeting with the regeneration body would provide the opportunity to "sit down explore options", adding the council "should have a certain degree of sympathy" for the developers.
Councillor Eamonn O'Neill said the group consisted of volunteers "who give up their time for no personal reward".
Councillor Anne McAleenan added: "They have done great work in the town. Look at how they transformed the Market House. The current metal structure at The Square is a blight on the town and the sooner we can get something done to progress things the better."
(PR/JM)
