Meanwhile, real estate sources say Hillsborough Oregon Associates, the Florida-based real estate partnership, has been offered $3.4 million for the land by Walgreen Drug Stores. The city's offer expires Jan. 8. If the two sides don't reach agreement, the City Council is expected to pass an ordinance authorizing condemnation of the property using its eminent domain authority. The procedure requires a judge to look at appraisals, conduct a trial and determine the amount the city must pay as fair market value to acquire the land.
The determined amount will go not only to Hillsborough Oregon Associates, but also to Albertson's. The grocery retailer closed the location in 1999 but retained leasehold on the property through 2032, with an option to buy out the lease and own the property. The two went to court this summer to determine ownership, but settled out of court in October.
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