City officials have tried blocking an attempt by a local rental-housing mogul to construct new apartments on Burcham Drive.

The East Lansing City Council authorized City Manager Ted Staton to purchase a piece of property for $160,000, on which DTN Management Co. wanted to construct a new apartment complex, during its July 19 meeting, city documents stated.

Although Deputy City Manager Jean Golden has said the city didn't want to get involved in a bidding war with DTN, the offer was still brought to the council by city administrators.

"That was the offer from the seller," she said. "He approached the council. The city did not come forward and request it."

Representatives from DTN did purchase the property at 767 Burcham Drive in late July after agreeing to pay the owner more money than the city was authorized to offer, said Allen Russell, a representative of DTN.

DTN now owns three pieces of property along the 700 block of Burcham Drive. They originally planned to build a complex that would have housed 90 occupants and 75 vehicles, but the plan was turned down by the council in March. City officials said they didn't like the plan because it could increase student housing.

According to DTN, the company's representatives were not given a fair hearing by East Lansing officials, so they filed a lawsuit against the city.

But Mayor Mark Meadows said the city never was approached with a formal offer from the property owner, so they didn't purchase it.

"Their deal with DTN had expired, and the city was interested in purchasing the property," Meadows said. "We authorized the city manager to accept an offer from the owner of the property. We were never given an official offer by the owner."

One council member said he voted against buying the property because of the pending lawsuit.

"I don't think we should do anything to exacerbate that litigation," Councilmember Vic Loomis said. "If we were not involved in litigation, I would have a different opinion."

During the March meeting in which the plan was rejected, Councilmember Bill Sharp said he didn't like the plan's appeal to the student rental market.

"If you put up these student rentals, you forget about the people on Alton (Street)," he said. "I will not be voting to approve until they bring back an owner-occupied plan."

Other members of the council agreed in March, saying the plan didn't fit with the area.

"I have a responsibility to the community," Councilmember Beverly Baten said in March. "I certainly wouldn't want to live with these in my back yard. We are trying to build up our families with children."