FREMONT, Calif. -- Fremont City Manager Fred Diaz said Tuesday that Oakland A's owner Lew Wolff must address a toxic chemical issue before the city will approve his plans to move the baseball team to Fremont.

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But while Diaz said the toxic chemical issue is important and must be resolved, "We don't believe it's a deal breaker."

Diaz said the problem is that Scott Specialty Gases, a distributor of highly toxic materials used in semi-conductor manufacturing, is located across the street from the site where Wolff wants to build a new stadium.

Diaz said Wolff must either pay to have the company relocated or find a way to mitigate potential problems if it remains in its current location.

Oakland A's officials couldn't immediately be reached for comment Tuesday.

Diaz said the city is in "standby mode" in its dealings with the A's while it waits for the team to complete its purchase of a 143-acre stadium site from Cisco Systems, which currently owns the land.

The transaction is expected to be completed in a few weeks, he said.

Diaz said the city's role is to serve as both facilitator and regulator for the A's plans to build the stadium.

It would be a $500 million stadium and would seat from 30,000 to 40,000 people -- the smallest capacity in Major League Baseball.

The village surrounding the stadium would have shops, restaurants, parking and possibly a hotel with as many as 3,000 units.

The A's say the ballpark could be open in time for 2011 season.

The team has played at the Oakland Coliseum, now known as McAfee Coliseum, since it moved from Kansas City in 1968.

They occupied Municipal Stadium in Kansas City from 1955-1967. Before that, their homes as the Philadelphia A's were Shibe Park/Connie Mack Stadium from 1909-1954 and Columbia Park from 1901-1908.