Mayor Kevin Johnson said Tuesday he will start searching for buyers for Downtown Plaza within weeks, after Westfield Group announced its willingness to sell the struggling plaza.

After the holidays, Johnson will start talking to "big developers" and investment groups who understand the plaza's role in revitalizing downtown. Potential buyers could include people interested in developing a new downtown arena at that site, he said.

"Westfield has agreed to step aside, and, if necessary, sell its interests in Downtown Plaza," Johnson said during his weekly press conference Tuesday morning. "That could be very monumental for the downtown corridor. The big news is Westfield is no longer willing to stand in the way of the downtown mall being developed."

The city is "extremely committed" to reviving the plaza, he added.

"It's one of our most important assets," Johnson said. "We want a developer to say, 'This is also a high priority for us.' "

However, Johnson added that Westfield's decision should "enhance" arena developers' ability to talk to Westfield about buying the property for a sports and entertainment center.

Westfield's agreement to sell comes after nearly 12 years of "bad blood" between the company and the city, which has been pressing Westfield to invest in the plaza since buying it in 1998, Johnson said. The company is one of the world's largest shopping mall owners, with more than $47 billion in investments in 119 shopping centers throughout the world.

"Over 12 years, there have been a lot of promises and commitments they haven't been willing to come through on," he said. "All of us feel that mall has never reached its potential in 12 years."

With a main entrance facing 7th and K streets, the Downtown Plaza was built in the 1970s. But the "inward-facing" mall, designed like suburban indoor malls of that era, is now outdated, Johnson said.

Westfield had proposed a $120 million plaza overhaul in 2006. But the company repeatedly stalled on putting those plans into action. In May, Westfield postponed those plans for at least the rest of the year, yet completed a $120 million reinvestment at Westfield Santa Anita in Southern California's Arcadia. Johnson opened negotiations with Westfield in August.

During talks, Westfield representatives said the company was willing to invest in Downtown Plaza, but "not nearly" as much as $120 million, Johnson said. Westfield also did not get on board with the city's new vision to open up the plaza, creating an "outward-facing" mall open to the sky and street traffic, he said.

The plaza, which Johnson said is 70 percent filled, has lost tenants such as Banana Republic and Ann Taylor recently. The mayor said he planned to call the chief executive officer of the plaza's anchor store, Macy's, later Tuesday to assure the department store chain of the city's commitment to creating a "better environment" at the plaza.

A vital plaza is key to the health of K Street Mall and adjacent areas, he said.

"It used to be bustling," Johnson said. "We have a chance to recreate that."

The mayor has been asked to bring potential buyers and investors to Westfield. Westfield is willing to sell if the city can find someone willing to buy the plaza at a "reasonable" rate, Johnson said.

The city and the company will collaborate to find a buyer or investors who can negotiate a price with Westfield.

"Whatever will be done, will be done together," he said. "We'll all be looking out for what's in the best interests of the city and Downtown Plaza."

Westfield Group could not be reached for comment.

Photo by David Watts Barton. Suzanne Hurt is a staff reporter for The Sacramento Press.