If the city of Austin can’t clinch acquisition deals with businesses affected by the downtown jail and justice center without moving negotiations to the courts, local officials now have the authority to seize the land under eminent domain.

City council members passed a state-mandated resolution Monday granting themselves authority to take the properties, though emphasized the action was, above all else, a formality.

“This is to comply with statutory requirements,” said city attorney David Hoversten, adding that the city would only proceed with eminent domain if “an agreement (with a business) cannot be made.”

The city has about $4.5 million in local and county funds to buy, relocate and demolish the dozen businesses and residential structures on two square blocks of land, spanning from First to Second Streets and Fourth to Second Avenues Northeast, by Dec. 31.

The money must also cover the cost of preparing the site for construction, an aspect that includes environmental assessments and any needed clean up. So far, no mitigation has been required.

Rochester-based Yaggy Colby was hired to handle the acquisition piece, and, to date, has brokered one deal on behalf of the city. With a purchase price of about $200,000, Thirsty’s Bar on First Street Northeast will close Aug. 2.

More than a half-dozen remain, though real estate specialist Brad King said Monday that three deals are close to completion. King and city staff made offers to all businesses early June, and have received a mixed response, he said.

According to King, owners still have an opportunity to reach a deal before the matter moves to a court setting. He added if letters are sent petitioning for the property and moving the matter to a hearing, that he will still be in negotiations with business owners until the court dates, if needed, take place.

“After the letter goes out, it’s still not a drop-dead date,” he said.

Hoversten said the hearing includes three appraisers, called commissioners, who do another valuation of the property and offer a recommendation to the parties. According to attorney Steve Hovey, who is representing the city in the acquisition process, the hearings cannot occur sooner than 20 days from the petition; appraisers have 90 days to make a ruling.

If business owner and city officials still fail to reach a compromise, the matter moves to district court, where a jury determines the sale price.

In the meantime, property owners can receive the municipality’s original offer, though it could be supplemented depending on the court’s ruling. A second hearing must also occur before the property is taken as part of eminent domain.

Second Ward council member Dick Pacholl was the only to oppose the resolution.

“I’ll call it legalized theft,” he said.

He criticized the city’s push to bring the jail and justice center downtown, arguing the county had two options — a green site near the Austin Municipal Airport and the Cook Farm industrial site — that wouldn’t have required any property acquisitions.

“The city fought long enough to get their way to put the jail downtown,” he said. “Now we’re running into problems, and it’s costing us.”

Hoversten and council members reiterated the resolution was merely a formality; it didn’t imply that eminent domain would be utilized.

“We have to be realistic, and the state Legislature realized that, and came up with a procedure for which these properties can be obtained,” Hoversten said.

Relocation has been moving forward as planned for residential tenants living at a Third Avenue Northeast apartment complex.

According to real estate specialist Penny Rolf, she and colleagues will meet with tenants soon to discuss relocation packages. While some have already found new homes, more than a dozen units remain, she said.

Mower County expects to spend about $32 million on the jail project, scheduled for construction in the spring. The county has also expressed an interest in purchasing a third block to the south, known as the “Robbins block,” for parking and possibly a geothermal system.