The Warren House, the rundown North Water street house owned by the town of Edgartown, finally has a bidder.

A group including Maggie White, the owner of Hob Knob Inn as well as construction and realty companies, submitted a two-option bid to restore the home into a single family residence early this week.

One bid would pay the town $1 million plus 40 per cent of the profits made from selling the house. A second offer would pay the town $1.25 million in cash.

The selectmen opted to take the bid under advisement and discuss it further at their June 17 meeting.

The house has been on the market since last fall but received no bids when it was first placed on the central registry.

The town originally set a $2.5 million minimum bid for the house. The second bidding process began in December with no minimum bids.

The town bought the old captain’s house in 2004 for $3.5 million; at the time a plan was underway to build an addition onto the library next door. Those plans later were scrapped and a new library will now be built elsewhere.

Ms. White and her partners submitted the bid on May 31. The lower $1 million offer would include 40 per cent of the profits, estimated at $400,000 or more, that would come from selling the house after it was restored.

“We’re very excited about it,” Ms. White told the Gazette Tuesday, saying the plan calls for a complete historic renovation of the old home, back “to its original splendor.” The building would be raised up and have its foundation replaced, she said, while the backyard could accommodate a pool and a two-car garage.

“The house has great bones,” Ms. White said, adding that the restoration of the Warren House, part of a row of captain’s houses, would be a contribution to the town.

She said her group has just completed a renovation project at 52 South Summer street.

“Our hope is that the town will allow us the privilege to restore it and to bring it back to is full and best use,” Ms. White said. She called the Warren House the “grande dame” at the beginning of North Water street.

While the board opted to take the matter under advisement, selectman Arthur Smadbeck was thinking about what to do if the bid was rejected. “It being as low as it is . . . I would hope that if we’re not going to accept the bid we would quickly put it back out,” he said. “Could we do that? How quickly can we turn it around?”

Town administrator Pamela Dolby said it would be a matter of putting the advertisement back in the central registry.

The house dates to the late 18th century, and was once owned by the Osborns, an old Edgartown seafaring family.