For more than three decades, the City of Alexandria and the Old Dominion Boat Club have been locked in a struggle over a series of properties near the foot of King Street. Last week, that struggle took a dramatic turn when City Attorney James Banks acknowledged that the city government is now considering using eminent domain to take some of that property — marking a change in direction.

"Eminentis only going to be something of a last resort," said Banks. "If all settlement discussions with the Boat Club break down, only then would we consider eminent domain."

Banks said that the City Council members had taken up the issue in executive session, and that the sense of council was that the city should change its policy on eminent domain. Mayor Bill Euille declined to comment on the change in policy, directing all questions to the city attorney. As a result of the new policy, the city made an offer of $150,000 for a several properties — a move that was interpreted by Boat Club members as the first step in a potential taking action.

"I think it’s reasonable to assume that they would eventually file a taking action against the club," said Bert Ely, a member of the club who stressed that he was not speaking on behalf of the organization. "Otherwise why would they put a lowball price on the table?"

EARLIER THIS WEEK, city officials staged a press conference on the Strand to show the properties it was acquiring. Banks stressed that the $150,000 did not include the controversial waterfront parking lot, which city planners want to transform into a new public space they call Fitzgerald Park. Instead, he said, the aim of the potential eminent domain would be to clear the dispute about the ownership of Wales Alley and part of Strand Street as well as several parking spaces adjacent to Mai Thai Restaurant.

"Most all of the value is in the parking spaces," wrote acting City Manager Bruce Johnson in a July 18 memorandum to City Council members, "as the Stand Street is a publicly owned right-of-way and so is Wales Alley."

Banks said clearing up the ownership to the Strand was especially important because the city plans to move forward with flood-mitigation as part of the waterfront small area plan. The moribund planning process for the waterfront broke down last month, when City Council members decided to delay making a decision until after the summer recess. In the meantime, Euille has appointed an advisory panel that has been asked to examine the issues over the summer and come back later this year with a recommendation.

"Hopefully this will put the city in a better negotiating position," said Boyd Walker, chairman of the Greater Alexandria Preservation Alliance. "Obviously they’re trying to ratchet up the pressure on the Boat Club."

ONE OF THE ISSUES that’s at stake is the future of Wales Alley — named for Andrew Wales, who owned a brewery on the alley and sold beer here as early as 1786. Last year, the City Council approved an ordinance authorizing the city manager to execute a five-year lease agreement with a restaurant known as Virtue Feed and Grain that would allow the restaurant to use part of Wales Alley for outdoor seating.

The Boat Club responded by filing a lawsuit, seeking an injunction preventing any obstructions in the alley. In April, visiting judge John McGrath ruled that the city owned the alley and that the Old Dominion Boat Club had a right to be able to move its boats and trailers through the alley.

"Keeping in mind that the deed which has given rise to this litigation was executed only months after George Washington had taken his oath of office as the first President of the United States and only four days before the storming of the Bastille," McGrath wrote, "it is not surprising that there are huge gaps in the evidentiary record."

While that decision is being appealed, the city has granted Virtue a permit to install tables and chairs in the Wales Alley. The Boat Club responded by filing a contempt of court motion, but Banks said the city was acting in accordance with the court’s decision as well as the King Street Outdoor Dining Program. He said the tables and chairs are temporary, allowing Boat Club members access to use the alley in the early morning hours.

"This is squarely within the perimeters of the King Street Dining Program," said Banks.