MADISON, Wis. -- Some city alders said they think the new downtown library could be debated all over again as the city continues to negotiate to take over that project.

It's the latest chapter in the latest snag to hit a city project, and questions about cost and a possible delay have some wondering where the downtown library project is headed, WISC-TV reported.

Madison's mayor and others said the pullout of the library developer Fiore might actually save the city money. But some warn another library debate might be needed.

"This one, I say, stay tuned," warned Alder Michael Schumacher, District 18 on the Madison Common Council.

Last year, the Common Council bypassed the idea of referendum or financial conditions and quickly backed the mayor's $37 million plan to build a new Central Library.

But less than three months later, the plan of a having private developer the Fiore Companies build it is all but gone, leaving some to wonder what's next.

"We're going to be in for round two in the library unless the current proposal stays and we continue as is. But if we don't, we'll have round two for the library and there will be maybe this time more questions about this than last time," Schumacher said.

Schumacher tried but failed to condition the project before on raising $4 million in private donations. The current plan calls for raising $10 million to help with the cost.

Out of two developers vying for the library project, the Fiore Companies won the bid by lowering its cost to build the six-story shell to $21 million.

But now a Fiore official writes on a company blog: "Overall budget constraints, timing concerns and the political sensitivity of the project" prevent Fiore from moving forward on it.

So what changed between now and back when the plan passed Council?

"I don't know. For whatever reason they (Fiore) became less comfortable with it, but it's actually a happy circumstance," said Madison Mayor Dave Cieslewicz.

Cieslewicz said that's because the city could potentially save money by bidding the library as one big public works project.

Negotiations continue to do just that, including buying the new library site from Fiore and selling Fiore the current one for future development.

Meantime the developer who lost out said he's not coming back.

"It's a huge disappointment to see the project fail even before it got started," said Terrence Wall of T. Wall Properties.

But, Wall added, "We questioned the (city) selection of a project $8 million dollars more than ours."

Wall's plan to put up a new library on the current site was less than Fiore's original one, in April 2009 -- though not by $8 million.

Figuring in the cost of renting temporary library space during construction, Wall's project total came to more than $38 million, while Fiore's stood at more than $43 -- a savings of $5.4 million.

Later, however, Fiore lowered its cost further.

The mayor said the Fiore concept is still best, though, because it contains a plan to develop the entire library block referred to as Block 66. That hotel and retail development is projected to bring in new city revenue to offset the library costs long-term, WISC-TV reported.