SAN DIEGO -- The board of San Diego's downtown redevelopment agency voted unanimously Wednesday to recommend that the City Council start talks for the construction of a new City Hall.

The Centre City Development Corp. board voted to recommend that city officials start negotiations with Portland-based Gerding Edlen, which was selected earlier.

The CCDC board rejected what's been called the "hold steady" scenario - - staying in the existing building and leasing downtown office space.

Gerding Edlen has proposed replacing San Diego's 1960s-era City Administration Building with a 34-story, 964,000-square-foot, glass-and-steel tower with an adjacent council chamber, parking, retail and public plaza.

The City Council is expected to make a final decision on the project in July.

Those opposed to the redevelopment say the city could save millions by waiting, while those in favor say the city would save millions by avoiding having to rent space.

The existing tower does not have an adequate sprinkler system and contains asbestos, among other things, city officials have said.

Opponents, most notably Councilman Carl DeMaio, say the city should shelve the project because of San Diego's precarious financial situation.

According to a 51-page assessment recently completed by the consulting firm Jones Lang LaSalle for the CCDC, redeveloping San Diego's City Hall complex would be more expensive in the short term, but it would save the city money in the long run.