The alley would connect northbound Snyder Road to eastbound Virginia Avenue and serve as the main artery for the 30-home development. The project would create 30 new, single-family homes, starting at about $150,000.

“For four years, a number of us have tried to come to an agreement with this particular property owner,” East Lansing Mayor Vic Loomis said at Tuesday’s city council meeting. “There’s 40-some official attempts on behalf of the city of East Lansing to work with this property owner and come to some agreement. And it’s been to no avail. Every other single property owner has met with the city, has negotiated, has come to some agreement.”

Gary Baird, owner of the property in question, declined comment Tuesday.

As the first part of the state’s condemnation law, the city must demonstrate the alley is necessary for the public good, a process that could take between 60 and 90 days, said Dennis McGinty, the East Lansing city attorney.

If the city gets through that step, it then will offer compensation based on an appraisal of the property. But Baird can refuse the offer and head to litigation, which could lead to a jury trial at Ingham County Circuit Court lasting up to possibly two years, McGinty said.

“We think it is (necessary) because it’s needed to connect the existing alley to Snyder to create two-way travel through the entire block,” he said.

Loomis said city officials arranged property swaps for Baird and offered to buy him out of the property. Loomis added he personally accompanied Baird on several tours for other properties, but nothing amounted of the discussions.

A good-faith offer to acquire the alley made in 2006 expired in January 2008, and the property owner has been reluctant to work with the city. The city would have paid $5,000 for the alley had the offer been accepted.

Tim Dempsey, East Lansing planning and community development director, said he expects the market value to be similar to the original $5,000 appraisal.

East Lansing City Manager Ted Staton said the location is particularly attractive to families with children because of its proximity to Marble Elementary School, 729 N. Hagadorn Road; MacDonald Middle School, 1601 Burcham Drive; and East Lansing High School, 509 Burcham Drive.

Students often consider the area of the city too far north to rent, but it is far enough away from student-dominated housing to warrant permanent residences.

Although the economy has restricted construction, several families already have moved into the new homes.

“It happened to be in the area where students tended to live,” Staton said. “But I think with the newer options — whether it’s north of the city, Campus Village (Apartments) — there’s been an erosion of demand for student housing in that kind of structure that far from campus.”