DTN Management Co., frustrated by the East Lansing City Council's rejection of a plan to construct five apartment buildings, might take the city to court in an attempt to overturn its ruling.

The proposed plan included the development of five apartment buildings, along the 700 block of Burcham Drive, that would house 90 occupants.

Representatives from DTN discussed the possibility of challenging the city during Tuesday's council meeting.

"We feel entitled to an approving vote," DTN representative Allen Russell said. "The question of what our rights were has been raised."

The project met all of the city's requirements and would have appealed to a variety of renters, Russell said.

Dennis McGinty, the city's attorney, said anyone can challenge the council's decisions.

"The city's decision to grant or deny a site plan is always up to review by the clerk or the circuit court," he said.

Many factors can affect how the City Council makes a decision, McGinty said. Council members are not bound to vote based on the recommendations of the city's staff or lesser committees, such as the planning commission.

"They are here to act upon additional information given to them by anybody in the community," he said. "They can also listen to the testimony and evidence submitted by residents."

Some council members expressed the concern that East Lansing has enough rental housing, and said adding these apartments would be extraneous.

City officials have been pushing to increase home ownership because of a market study, which looked into a potential need for owner-occupied housing, said Tim Dempsey, a community and economic development administrator.

By encouraging the development of townhouses, condominiums and senior housing, some city officials hope to stabilize the balance between rentals and owner-occupied housing.

Despite the findings of the city's market study, some people would argue there is a need for new rental housing.

"There are some who would say there is demand for modern housing with high-speed Internet access and bedrooms for each occupant," said Howard Asch, director of code enforcement and neighborhood conservation.

There isn't a current market study on file that chronicles a change in rental housing, city officials said.

"That would be a great thing to have," Dempsey said. "I would like to see some of the local landlords get together and look at doing a collective market study.

"We don't have a good understanding of where that market is headed."

In the meantime, DTN will decide how and when to pursue the development of its latest project, even if it results in a trip to court.

"We will continue to evaluate the options and make a decision that makes sense to the investors," Russell said.