By Emily Trube, 1080 KRLD

The owner of this piece of property claims it's worth 2.5 Mil, the City of Dallas says $300k (Photo Emily Trube, 1080 KRLD)

UPDATE at 3:15 p.m: The panel of commissioners has sided with the city, saying the land is worth $182,000–far less than the $2.5 million she wanted, and even substantially less than the $300,000 the city offered her.  The owner can appeal the decision, but has not yet indicated whether she will do so.

DALLAS (CBSDFW.COM) –  A 2,500 square foot piece of property, about the size of a 4-bedroom house, is at the center of a Dallas City Hall fight.

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The rectangular piece of land sits at 808 Young Street, on the edge of what used to be a parking lot.  The parcel is now part of the landscaping around the new Omni Dallas Convention Center Hotel and therein lies the problem.

An independent appraiser, working for the City of Dallas, claims the parcel cannot be used for anything and is essentially worthless.

2,.500 Sq Ft piece of property at Young & Lamar St in downtown Dallas (Photo: Emily Trube, 1080 KRLD)

But the owner says it can be used for something – income.

Landowner Carolyn McClain has a 99-year lease on the property, which is currently netting about $40,000 a year.

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McClain has been leasing the parcel since 1983.

City leaders say the annual income amount is what should be used to determine the value of the land. The city wants to cite eminent domain, seize the land, and force McClain to take their offer of $300,000.

A panel of three special commissioners will decide whether the landowner should get the $2.5 million the owner says the property is worth.

At the conclusion of the hearing the commissioners will place a property value on the land and City Hall has the right to issue a check and take control of the parcel… that is unless McClain’s attorneys appeal the decision.

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KRLD’s Emily Trube Reports