Roanoke's housing authority wants to buy a building that sits at the edge of a growing business and medical park -- and under the cloud of a possible condemnation.

The board of the city's Redevelopment and Housing Authority voted Monday to offer $1.78 million for two parcels in the 1200 block of Williamson Road for development as part of the Riverside Center.

There's no word on how the offer will be received by the property's owners, who have a lawsuit pending against the potential buyer.

William and Maeona Stegall accuse the housing authority of threatening to condemn their property in 2001 and then doing nothing, leaving them unable to rent or sell the site because of its diminished value and uncertain future.

Although the Stegalls' lawsuit was mentioned in material provided to the authority's board of commissioners Monday, it was unclear how the sale of the property might affect the litigation.

Even if the Stegalls decide not to sell, the housing authority must make a bona fide offer to purchase the site before it can start condemnation proceedings if it decides to take that route, the board was told.

A lawyer for the Stegalls could not be reached Monday.

There are no immediate plans for the couple's property, which sits at 1255 and 1259 Williamson Road S.E., said housing authority Executive Director Glenda Edwards.

Since 2001, the authority has spent about $21 million in the Jefferson Street-Reserve Avenue area -- buying and relocating businesses, clearing land and laying the groundwork for new buildings that will be part of Carilion Clinic's Riverside Center, a complex of new businesses, health care operations and a medical school.

The $1.78 million offer for the Stegall property was recently allocated by the Roanoke City Council, with the city's housing authority acting as the conduit for the transaction.

According to the Stegalls' lawsuit, the authority adopted plans in 2001 to condemn their property to make room for the medical park. Under state law, the authority can invoke condemnation powers, also known as eminent domain, to take property designated as "blighted" for a legitimate public purpose.

In what's known as an inverse condemnation proceeding, the Stegalls took the initiative by suing the authority first, claiming the city gave them a low-ball offer of $750,000 before backing out and leaving the property in limbo.

Filed last summer in Roanoke Circuit Court, the lawsuit asks a judge to find that the authority's actions have amounted to a seizure that has frozen the property on the market. If the judge agrees, a jury would be empaneled to determine damages.

So far, the authority has filed just one condemnation action involving the Riverside Center, against the owners of a flooring company on Reserve Avenue. That legal action is pending.

Meanwhile, Monday's meeting of the authority's board of commissioners was the last one before three members must decide if they will seek reappointment to the body by the city council.

Chairman Joseph Lee, Vice Chairwoman Anita Powell and commissioner James Allen all said after the meeting that they have not decided whether to seek new terms when their current tenures expire Aug. 31. The deadline for applications is Aug. 1.