Rail leaders have restarted condemnation proceedings for Blood Bank of Hawaii’s headquarters in Kalihi, despite the blood bank’s urging that they hold off as negotiations continue.

Robert Thomas, an attorney for the blood bank, told the Honolulu Authority for Rapid Transportation board Thursday that the parties are “well on their way” to a settlement over the Dillingham Boulevard property and that restarting the eminent domain process at this point would lead to “negotiations under the threat of a hammer.”

Rail officials, however, said that they’re already behind schedule for that acquisition and are running out of time. Despite the Honolulu City Council’s dismissal of HART’s earlier eminent domain proceedings against the blood bank in August, the HART board voted unanimously Thursday to restart the process in case negotiations fail.

The move sets up another possible showdown before the City Council over the blood bank issue sometime in the next 45 days.

In January the blood bank relocated its permanent donor facility to Young Street in Moiliili due to the looming rail construction. Officials there say they’re still using the Dillingham building for blood processing, testing and distribution but will have to eventually move those operations as well.

HART is looking to acquire a 4,451-square-foot space in front of the Dillingham building, and records show that the agency last year offered nearly $422,000 for that property.

Echoing the concerns of other property owners facing eminent domain for the Honolulu rail project, blood bank officials say that the offer from HART doesn’t cover the damage that will be done to their operation.

In a statement released this week, the blood bank said it has spent tens of thousands of dollars on studies that show it makes more sense simply to relocate instead of trying to retrofit the Dillingham building against rail’s “detrimental impacts.” It further stated, “We were very surprised when we learned that HART is now going back to the councilmembers to short-circuit this cooperation.”

On Thursday Thomas told the board that the blood bank is seeking $4.8 million to take the full building and cover “severance damages.”

HART board members, including Chairman Don Horner, said Thursday that the agency cannot give special treatment to the blood bank and that it intends to give the organization what it is entitled by law.

“We’re going to do everything within our legal capacity to support the blood bank,” Horner added.

Other property owners facing eminent domain along Waiwai Loop, an industrial area near Keehi Lagoon, have similarly said that HART’s offers for partial stretches along the front of their properties don’t reflect the full damage done to businesses there. The impacts include loss of parking and a restricted ability to drive on and off the premises, they say.

International Express, a trucking and delivery business, has stated that the land HART seeks along the front of its property will make operations there impossible. Other owners, who asked not to be identified because of the pending negotiations, have said they need to consider whether it’s worth the hassle and attorney fees in the long run to get a better price.

HART officials Thursday approved eminent domain proceedings on four other properties in addition to the blood bank restart. That brings the total number of properties facing eminent domain for rail up to 50, although rail officials say they believe they’ll reach agreements with most of those owners.

They report having so far used eminent domain proceedings to take one partial property at Stuart Plaza at 945 Kamehameha Highway in Pearl City.