Boston-based developer Leggat McCall Properties has canceled its purchase-and-sale agreement for a 108-acre redevelopment parcel north of Boston.

Bill Gause, director of acquisitions for Leggat McCall, said the transaction didn’t make sense at the agreed-upon purchase price.

“There was a confluence of factors, environmental and permitting,” he said. “What was ultimately passed in the overlay district by the city was less than we anticipated, so that was a factor in the decision.”

Woburn Mayor Scott Galvin in March proposed a new technology and business mixed-use overlay district for the Hill Street parcel which sits alongside the southbound lanes of I-93 on the Woburn-Winchester line. A small portion of the property is located in Stoneham.

Woburn city councilors in August approved a new overlay district governing the scope of development that will be allowed on the site, approximately 57 acres of which are in the city. The final version allows 250,000 square feet of retail space by special permit, up to 300 multifamily housing units and 60,000 square feet of restaurants. It also allows hotels, offices, advanced manufacturing and biotech manufacturing.

“The developer on this project had major concerns with the original zoning legislation the mayor introduced,” Woburn City Council President Richard Haggerty said in an emailed statement. “The City Council worked hard to move the needle closer to what the developer wanted. The City Council’s final legislation included doubling the amount of retail allowed on site compared to what the mayor sent down and increased the amount of residential allowed on site by 50 percent. The developer had a seat at the table the entire time with the City Council and we were able to move the legislation closer to a deal that, I thought, the developer could have lived with. There is no doubt the legislation the City Council passed was much more in line with what Leggat McCall was looking for compared to what the mayor originally sent to us.”

Plans are moving ahead with another experienced developer that has placed the property under agreement, said Justin Smith, a managing director with Newmark Grubb Knight Frank in Boston. The brokerage approached other companies that had bid on the property in early 2016.

The new potential buyer is engaged in due diligence on the property, Smith said.

“I am always eager to work with developers who want to bring commerce and jobs to Woburn and they will always have a seat at the table to discuss their ideas about how to create economic development and jobs in our city,” Haggerty said. “Woburn is a pro-business community and I’m excited about meeting with the new potential owners of the site. I’m also excited about moving forward several other large projects in our community that are already in the works.”

Northfield, Illinois-based Kraft Foods shut down the 400,000-square-foot food ingredients factory at the end of 2015 and put the property on the market. Operating for nearly a century, the plant was known locally as “The Gelly” because of its role in gelatin manufacturing.

Editor’s Note: This article was updated on Nov. 9 with statements from Richard Haggerty.