Meanwhile, real estate sources say Hillsborough OregonAssociates, the Florida-based real estate partnership, has beenoffered $3.4 million for the land by Walgreen Drug Stores. Thecity's offer expires Jan. 8. If the two sides don't reachagreement, the City Council is expected to pass an ordinanceauthorizing condemnation of the property using its eminent domainauthority. The procedure requires a judge to look at appraisals,conduct a trial and determine the amount the city must pay as fairmarket value to acquire the land.

The determined amount will go not only to Hillsborough OregonAssociates, but also to Albertson's. The grocery retailer closedthe location in 1999 but retained leasehold on the property through2032, with an option to buy out the lease and own the property. Thetwo went to court this summer to determine ownership, but settledout of court in October.