LONGMONT - City officials in Longmont plan to start eminent-domain proceedings against the Dillard's department store chain within the next week, according to Brad Power, Longmont's economic development director.

A filing will be made in Boulder County District Court, which would start the process on setting a price for the property and granting the city possession of it. City council members - acting as the Longmont Urban Renewal Authority - approved the eminent-domain action Tuesday, April 9, in connection with the $80 million redevelopment of Twin Peaks Mall, which is being renamed the Village at the Peaks.

Eminent domain is the term used to describe a government's legal right to take private property for public use after compensating a property owner.

A Dillard's spokeswoman reached Wednesday did not have a comment. Dillard's issued a statement on Wednesday, April 10, saying it was "disappointed that the city has seen fit to approve the taking of Dillard's property by the power of eminent domain, which process will result in a costly, lengthy and uncertain outcome."

Longmont city staffers on April 12 offered to pay $3.6 million to buy the Dillard's department store and property at the mall as part of a good faith negotiation process, Power said. A Dillard's representative responded that the offer would not be accepted, Power said.

In a subsequent conversation, a Dillard's representative said the company doesn't see any future for it in the shopping center redevelopment, and that Dillard's plans to exit the market. Later, a Dillard's representative said the company is seeking $5 million for the property, Power said.

The 94,000-square-foot building and land was valued at $3.03 million in a city appraisal conducted in November. A Boulder County Assessor's Office appraisal assessed the property at $2.935 million for a two-year period ending in June 2012.

Before the city council authorized the eminent-domain action, mall redeveloper NewMark Merrill Mountain States negotiated unsuccessfully with Dillard's over the past year, offering a final cash price of $3.5 million at the end of March. Dillard's holds veto power over any redevelopment of property.

Even after the eminent-domain filing is made, Longmont officials would still be willing to negotiate, Power said Wednesday.

"If Dillard's wants to engage in settlement discussions at any time, that's something we would entertain," Power said.