WATERVILLE – The City Council preliminarily voted 6-1 Tuesday in favor of selling the former site of shirt maker C.F. Hathaway Co. to an Arizona developer for $1 million.

The Hathaway plant, which closed Oct. 18, 2002, after 165 years of making shirts in Maine, is owned by the city of Waterville.

The City Council was expected to vote again on Michael J. Peloquin’s offer later Tuesday before taking a final vote Feb. 4, City Solicitor William A. Lee told the Morning Sentinel of Waterville.

Peloquin, whose company Atlantic Partners LLC has developed residences and office buildings in the Southwest, says he wants to set up a new shirt-making operation in Waterville and rehire as many former Hathaway workers as possible.

Council Chairman Dana W. Sennett said Monday that the sale represents a chance to restart an industry that’s a part of the city’s history.

“It’s a crapshoot, but hopefully it’s to the benefit of all citizens,” Sennett said.

Councilor Antone Tavares voted against the sale, expressing concerns about the number of lawsuits in which Peloquin has been involved, as well as some of his business relationships.

After the meeting, Lee said councilors had discussed Tavares’ concerns during a 20-minute executive session.

“Michael Peloquin entities have been involved in a number of cases of civil litigation in Arizona, both filed by him and against him,” Lee said. “That has been discussed with the council, but we have someone who is coming forward and has expressed strong feelings on trying to put people back to work here.”

Lee added that Peloquin recently sent $5,000 to Donald Sappington, Hathaway’s former chief executive officer, to be distributed to former employees who are struggling financially.

“What Don told me is that it came out of the blue,” Lee said.

Lee said the sale price of the site’s building and land was reduced from $1.3 million because the city could not guarantee that zoning restrictions would not be placed on the property, as Peloquin requested.

Even if the Water Street plant reopens, it won’t be making Hathaway shirts. Connecticut-based Windsong Allegiance Group, the company’s final owner, retains the rights to the Hathaway label and plans to revive it with products made overseas.