PROVO — The Provo City Council has authorized the use of eminent domain to acquire a downtown hotel the city wants to demolish later this month to make way for a proposed $6.5 million performing arts center.

Mayor Lewis Billings promised to continue negotiations with Traveler's Inn owner Bob Patel and use eminent domain as a last resort, but one-third of Provo's delicately constructed fund-raising package for the arts center depends on construction beginning by Dec. 31.

The city's last offer to Patel was $875,000. It also offered to buy another downtown hotel and trade it to Patel, who is asking for the equivalent of $1.4 million in the complicated haggling.

The Provo Arts Council scrabbled together $6.5 million this fall through a creative mix of funding sources that does not include any new taxes. The money will pay for renovation of the old library at 425 W. Center.

However, designers realized last year they needed more room. City Hall is on the east side of the old library. Directly west is Patel's Traveler's Inn, 469 W. Center, which is on a half-acre lot.

The refurbished building will include a 700-seat theater, a full stage, recording studios and offices. For Provo Arts Council executive director Kathryn Allen, her 30-year dream is coming true.

"This might actually happen in my lifetime," she said.

The city wants to build the center because of new restrictions on arts performances at the Provo Tabernacle, where the arts council holds its events. The tabernacle has wooden benches, poor lighting and doesn't have a lobby for parties. By law, Allen said, the tabernacle cannot allow performers to sell their CDs during and after concerts. Also, the LDS Church-owned facility can only allow registered charities to sell tickets at the door.

Patel is frustrated, however. He told the council Tuesday during a meeting that stretched well past 11 p.m. that he is willing to sell the land — but wants to continue in the hotel business and wants fair market value for his property.

"If I can work it out, I'll do it tomorrow," he said. "If I can't work it out, I'll never do it."

City officials hired real estate agent Evelyn Johnson to approach Patel in September 2004 but told her not to identify the city as the prospective buyer. Johnson said she ordered an appraisal and offered Patel $550,000 in December 2004.

Patel has repeatedly raised issues about the appraisal and it has been adjusted twice, first to $800,000 and then to $875,000.

"We offer the appraisal," Johnson said. "I have been in real estate for 32 years, and I've never had a city say anything but, 'Be fair.' We have made eight offers to Mr. Patel in the past year."