MILFORD — A deal between city officials and Good Shepherd Day Care Center to purchase land on Naugatuck Avenue for an expanded day-care facility overcame its first hurdle this week when land-use officials gave it their stamp of approval.

The deal would expedite the sale of the land and avoid land-use restrictions that could make the project too costly for the nonprofit day-care center, city officials said. The center has plans to build an expanded facility on 1.5 acres owned by St. Gabriel's Church.

Tom Ivers, the city's community development director, said the city is proposing to purchase the land from the church for $545,000, then lease it to the day-care center for the same amount for 99 years, resulting in no cost to taxpayers. The deal was required to make the project go forward because land-use restrictions on subdivided properties would make the acquisition too costly for the day-care center, he said.

Jack Jansen, chairman of the Planning and Zoning Commission, said city regulations require developers to donate 10 percent of the land for open space or donate 10 percent of the property's value to the open-space fund when subdividing a parcel. The regulations, however, don't affect municipal land purchases.

"It could have cost the center hundreds of thousands of dollars," Ivers said. "This deal is a great example of a public and private partnership to meet the community's needs."

Gloria Hayes, director of the day-care center, said the land purchase also needed to be expedited because of looming deadlines for a $3 million state grant needed to build the new facility. The land acquisition must be in place before the board of directors of the Connecticut Health and Education Facilities Authority meets next Tuesday to approve the funding.

Zoning board members unanimously approved the land deal Tuesday, though the plan needs the approval of the Board of Aldermen before it can proceed. Tom Beirne Jr., chairman of the Board of Aldermen, said the aldermen are expected to vote on the deal during a special meeting at 6:30 p.m. Monday at City Hall. He said the deal appears to be a winning proposition for all parties involved and that the board would likely look favorably on the project.

The Rev. John Gatzak, a spokesman for the Hartford Archdiocese, said church officials are pleased with the arrangement. He said the money the church will receive from the sale would be used to assist St. Gabriel's School, which is on another part of the property.

Hayes said she hopes to break ground on the project before the end of the year. Dirk Perrefort, who covers Milford, can be reached at 878-2130.