Larry V. Silverstein, who owns properties at 109 and 110 Emerson Place and 707 and 711 State St., said he is willing to sell the four rental homes for their collective 2001 assessment, which City Assessor Marlene A. Norfolk said was $335,500.

"I've been paying taxes on these properties for several years," said Mr. Silverstein, a chiropractor at Northern Lights Chiropractic, 1116 Arsenal St. "If they want to buy the properties, just give me the assessment."

"I've surrendered," he said. "Just give me what's due me."

The properties must be razed to clear the way for rehabilitation of the Emerson row apartments and renovation of a dozen other houses near the apartments, said Gary C. Beasley, executive director of Neighbors of Watertown Inc., 116 Franklin St., which is leading the project.

While Mr. Silverstein's new price is lower than the $450,000 he originally asked for, it is still almost twice the $188,000 Neighbors originally offered to pay.

Neighbors' price came from an appraisal based strictly on property value, while Mr. Silverstein said his original price was based on the income he derives by renting apartments in the four structures.

The agency offered a compromise with Mr. Silverstein: have both sides pay half the cost for a neutral, mutually agreed upon appraiser to determine a price and abide by that appraisal.

Mr. Silverstein said he decided not to accept that offer and is instead working with City Manager Jerry C. Hiller and Mayor Joseph M. Butler to come to an agreement. The city hired an appraiser, David Peatfield, Syracuse, who was in Watertown on Tuesday to inspect the four buildings.

"I believe the city is very fair," Mr. Silverstein said.

However, the Near East Side Neighborhood Improvement District, which is made up of business and home owners on and near State Street, has accused Mr. Silverstein of price gouging and standing in the way of the Emerson Place project. They have asked the city to pursue eminent domain, where the city would simply take the properties from Mr. Silverstein and pay him a court-determined price.

One NESNID member, P.J. Simao, who owns Dealmaker Auto Sales, 420 State St., has said he wants to build a new facility for the dealership. However, Mr. Simao said that if the Emerson Place project isn't started this year, the new facility and the dealership will be moved outside the city to land he owns on outer Arsenal Street near Wal-Mart.

"That project will cost hundreds of thousands of dollars," he said. "I want to put that money where it is best spent. If the commitment from the city is there, it's prudent to build it on State Street. If the commitment is not there, it is not prudent to make that investment on State Street."

But Mr. Silverstein said NESNID is jumping to conclusions too quickly.

"This thing's going to take place," he said of the Emerson Place project. "It's going to happen. I don't know why they're acting like Mexican jumping beans about this."

Mr. Hiller said the city isn't considering pursuing eminent domain at this time.

"The city is cooperating with Neighbors of Watertown and Dr. Silverstein in trying to find a negotiated settlement for his properties," he said. "I'm optimistic we'll have a positive outcome."