The Small Business Administration accepted a $25 million bid for the former Rocky Point amusement park property yesterday, according to a reliable source.

Mark Hayward, SBA district director, refused to confirm the report, saying an announcement would be made this morning at SBA offices in Providence at 10. He said the agreement would require the approval of the Federal Bankruptcy Court.

Toll Brothers, one of the country’s largest developers of residential properties, reportedly submitted the high bid during a two-hour telephone auction run by the law firm of Shechtman, Halperin & Savage. Five companies were reportedly involved in the auction.

Toll Brothers is a publicly owned company whose stock is listed on the New York Stock Exchange. It is currently building luxury residential complexes in 21 states, including Arizona, Ohio, Florida, Delaware and Texas. It is building three separate properties in Rhode Island. Those close to the process were likewise tightlipped about the outcome of yesterday’s auction.

“I know there was an auction today and they would be making an announcement tomorrow,” Mayor Scott Avedisian said Wednesday. The mayor said he had agreed to “embargo” the results as requested by the SBA.

Questioned as to whether the selected bidder would abide by city efforts to provide public access to the shoreline, reach an agreement with Rocky Beach residents whose homes are on leased property and provide open space, Avedisian said, “I was told anyone who was going to be a part of the auction had to sign a list of stipulations.”

A list of SBA stipulations indicates that the buyer of the Rocky Point property will agree to allow public access to the Narragansett Bay shoreline at the property, pay any and all environmental and demolition costs and sign off on a purchase and sales agreement within three weeks of yesterday’s bidding.

The future of Rocky Beach was also addressed in the list of terms and conditions, with language stating that the buyer’s total purchase offer would be divided into parts representing the Rocky Point and Rocky Beach areas and that the buyer’s offer for the Rocky Beach portion of the property will survive any successful exercise of the Rocky Beach Association’s right of first refusal.

Also included in the list of stipulations:

• The buyer will limit its development to 350 residential units and will not allow home-based businesses outside of a designated commercial area.

• The buyer will not build a gated community.

• The buyer understands that the City of Warwick will not make any funding available for the development of Rocky Point.

• The buyer will ensure that Rocky Point Avenue is the primary entrance and exit for any development.

As court appointed receiver for the 123-acre property, the SBA took the unique approach of involving city representatives as well as Warwick Neck residents in reviewing what it considered as the seven legitimate proposals for the site. All of the developers offered to pay between $12 million and $13 million for the former park. Over a two-day period developers presented their plans to the group, after which they narrowed down the preferred proposals to three or four. With the exception of one plan for a retirement community offering condominiums and assisted living, all of the proposals were for a residential development.