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WATERTOWN, N.Y. — In other business, the City Council discussed the future of city-owned property at 138 Court St., formerly Berow & Monroe Shoes, after both Neighbors of Watertown Inc. and its former owner have shown interest in purchasing the property.

The city acquired the building last week after former owner Alex D. Rahmi failed to pay back taxes totaling $17,476.96.

Watertown attorney Andrew M. Capone presented the City Council with a check written to the city for the total amount owed in interest and back taxes which was not accepted.

“Mr. Rahmi had purchased this property privately and has invested $140,000 of his own money in it,” Capone said. The attorney said his client fell short on paying taxes because Rahmi’s Chevrolet dealership, based in Charles Town, W. Va., had fallen on difficult financial times in recent years.

Capone said Rahmi had also recently filed for bankruptcy, but was ordered to refile his petition.

“What my client is asking is that the council allow him, by way of private sale which the council has the right to do under the city charter, to allow Mr. Rahmi to repurchase his property and to continually rehab and redevelop it in order to sell it,” Capone said.

Councilman Joseph M. Butler Jr., took issue with potential problems Rahmi could face attempting to rehabilitate the building, condemned for occupancy by the city in 2008, while it waits for a buyer on the market.

“My concern would be, if it’s not sold, it remains in its current condition for months and months on end where someone with more robust funding could come in there and really bring it up to speed,” Butler said.

Randy T. Raso, co-owner of Raso Realty LLC, Watertown, said his company had received about 50 inquiries since Rahmi listed the building on the real estate market for $159,900 on July 31. Raso said serious offers have been made on the property.

Other council members remained “skeptical” that Rahmi would be able to fund renovations.

“It’s been just left there to rot for the last couple years and now you want us to have faith in the fact that maybe it will get done the way the city likes the downtown,” Councilwoman Teresa R. Macaluso said.

Gary C. Beasley, executive director of Neighbors, said his organization showed interest in the property once it became city-owned Sept. 20.

“Whichever way the council wants to go, we’re available to either work with the city in partnership or with the buyer,” Beasley said. Both the city and Neighbors of Watertown would have to apply for grants for rehabilitation of the property, according to Beasley.

The earliest application would have to be filed by Oct. 30, Beasley said.

“If we applied for something, God knows how long these applications take to get reviewed or decided on and the thing is essentially tied up, in still city ownership,” Graham said.

Councilman Jeffrey M. Smith, who floated the idea of selling the property through an request-for-proposals process, asked Beasley about private sector development.

“We step in if there is a building that’s condemned and if the private sector has shown they can’t do it, then we’ll try and bring our resources to the table and prevent a hole in our downtown,” Beasley said.

“I would say we fast-track the private sector opportunity for a month or two and have RFP, as opposed to a pubic auction, with the idea that it’s not sitting and waiting for months or years,” Smith told council members.

With council members divided on selling the property through an RFP process, private auction or a partnership with Neighbors, the City Council agreed to further discuss the issue at a later meeting.