Developers of the Station Place project on Campbell Street likely will seek approval to reduce the development from 116 residential rentals to 85 units.

The move would eliminate one level of structured parking, bringing the building down from five stories to four. The 85 units would be comprised of 39 one-bedrooms and 46 two-bedrooms.

Rather than 125 parking spots in structured parking, there would be 53 on-site surface spaces and 18 on-street permit spaces, along with about 30 spaces leased from the Parking Authority’s Lot H.

It’s still unclear when Heartstone Development would file a new application with the Planning Board, but managing member Clay Bonny expects it would be later this year. Station Place received approval for 116 units in September 2008 but different options for the project were being considered as early as last summer. Previously, the Planning Board approved 80 for-sale condo units in early 2007.

The East Hanover-based developer, which also built River Place on Lewis Street, has purchased several properties along Campbell Street and Elm Avenue but still has to acquire the main property for the project, A&M Industrial Supply. Closing on that property has been extended through September at the request of property owner, said Bonny. By contract, the company has a year from closing to move out, he added, describing the best-case scenario as one where demolition would take place this fall, with groundbreaking by spring 2011.

City Administrator and Redevelopment Director Peter Pelissier mentioned during a Redevelopment Agency meeting last July that A&M Supply had found a location within Rahway to relocate to, though he was not at liberty to say at the time where that was. It’s unclear whether A&M has a site in mind or not.

The building would front Campbell Street, from West Cherry Street to Elm Avenue, with the main automobile entrance on West Cherry Street into the parking area behind the building.