Neighbors of Watertown is leading the project, which would rehabilitate the century-old Emerson Place row apartments and renovate a dozen other houses near the apartments. Neighbors of Watertown wants to sell the houses to first-time homeowners, who can obtain financial help through various housing assistance programs, and keep about six, with a total of 22 apartments, to rent.

The idea sounds nice, but if Larry V. Silverstein doesn't sell four parcels he owns on State Street and Emerson Place - at what public officials call a reasonable price - the whole project could come to an abrupt halt.

"It's a deal-killer," Gary C. Beasley, executive director of Neighbors of Watertown, said at a meeting this morning of the Near East Side Neighborhood Improvement District. "It's a no-go if those properties cannot be addressed."

Mr. Beasley said Mr. Silverstein's properties, along with a dilapidated building at 703 State St., must be torn down to make way for the project.

He said Coon, Varley & Associates, 200 Washington St., appraised the buildings, at 109-110 Emerson Place and 707 and 711 State St., at $188,000.

Mr. Silverstein's counteroffer was for more than $300,000, Mr. Beasley said at this morning's meeting, but just for the buildings on Emerson Place and at 711 State St. The 707 State St. apartment building is not included in Mr. Silverstein's offer.

"We're talking about a huge renovation of one of the most noticeably blighted neighborhoods in the city," said county Legislator Scott A. Gray, R-Watertown. "And one man stands in the way of this happening."

Watertown Mayor Joseph M. Butler said the city could pursue eminent domain, where it would simply take private property for public use, if Dr. Silverstein doesn't bring his price down.

"It's devastating to think that one of our local landlords would not cooperate in pursuing a reasonable settlement for the few properties that he owns," Mr. Butler said. "It's unfortunate that the income derived from these properties has not been reinvested into the exteriors of these buildings. If we can't acquire the properties equitably in a timely manner, I would support pursuing eminent domain."

Mr. Silverstein, however, said he is not "blocking" the project. He said he never wanted to sell the properties before, so put out a price that would cover the income he would lose by selling.

"If they can't afford it, it's not me blocking it," he said this morning. "It's their resources. If they don't have it, that has nothing to do with me."

But Mr. Beasley said Neighbors can't move from its $188,000 offer. He said that since the agency is relying on tax credits, investors and loans to make the project happen, its purchase offer must rely on an appraisal.

"If we go over that value, it can't be supported by the operating budget of the project," he said. "It's not just a matter of not wanting to pay more. It's not just a matter of my pouting and saying no."

Mr. Silverstein said it would be unfair to force him to give up something he owns at less than a value he determines. He said he made his offer based on an income value rather than a strict land and property value. He accused Mr. Beasley of trying to publicly pressure him to lower his price.

"I think he's trying to manipulate me because he wants this project," Mr. Silverstein said. "They want to put pressure on me so I'll fold."

More than once at this morning's NESNID meeting, Mr. Silverstein was referred to as a "slumlord."

Mr. Silverstein said he couldn't disagree more.

"I'm very much into restoring and revitalizing," he said. "I do want the city and the community to improve. There's no question about it. But their offer is not even close to a fair price."

But Mr. Gray said the unfair price is the more than $300,000 Dr. Silverstein is asking for properties he called blighted and deteriorated.

"When people drive around the city and say it's depressing, that's what they mean," Mr. Gray said, referring to Mr. Silverstein's buildings.

Mr. Silverstein agreed that his properties on and near State Street are not in prime condition. He said, however, that he has spent tens of thousands of dollars to improve those properties and blamed their deterioration on bad tenants and a lax City Court system that routinely favors tenant rights over those of landlords.

"I don't have those properties in that condition because I want them in that condition," he said. "Those properties are in a condition that supports the neighborhood and the tenants who live there."