Neighbors of Watertown has proposed a nearly $4 million renovation project for the historic Emerson Place Apartments and a dozen nearby residences in the 700 block of State Street, an area in need of improvement. NOW would sell some of the houses to first-time homeowners but retain ownership of 22 rental apartments. It is an important project that will reverse years of decay in a blighted neighborhood.

NOW squared off publicly Thursday over the sale price of four properties said to be essential to the project. The group is offering $188,000 for the buildings, but owner Larry V. Silverstein has asked $300,000 for three of them while refusing to sell a fourth.

Mayor Joseph M. Butler has suggested the city intervene by invoking eminent domain if necessary to seize Mr. Silverstein's properties. However, the city should assume the role of interfluence. The city should prevail upon both parties to resolve their differences through negotiations.

The proposed rehabilitation has been put together over several months by well-meaning people. It offers a chance to clean up an eyesore on one of the city's major streets and to provide improved housing opportunities for the prospective owners and tenants. The project needs to be completed.

The city should seek to bring both parties together in an amicable fashion so the project can go forward for the benefit of the city and those who live in the neighborhood.