A plan by Honolulu City Council members to buy the Blood Bank of Hawaii’s Kalihi site took a step forward Tuesday after the Executive Matters and Legal Affairs Committee voted 7-1 to reject a proposal to begin condemnation proceedings on a sliver of the property sought by rail officials.

The action clears the way for approval of a separate measure, Resolution 16-55, set to go before the Council Budget Committee today. That measure would authorize a purchase of the entire property, giving the Honolulu Authority for Rapid Transportation the land it needs for the rail project while dedicating the rest toward a homeless services center.

Ray Soon, Mayor Kirk Caldwell’s chief of staff, called Council Chairman Ernie Martin’s proposal to purchase the site a “great idea,” adding that the administration has also surveyed the site for housing possibilities.

The Blood Bank, HART and the Council have clashed over the property for more than a year. HART’s request last year to condemn the property also was rejected.

HART officials say they need 4,451 square feet along the Dillingham Boulevard side of the property for the elevated rail guideway.

But blood bank representatives say taking that sliver would disrupt operations. They want the city to buy the entire 27,176-square-foot parcel for $4.8 million, its estimated appraised be worth.

HART executives warned Council members that if a deal isn’t reached on the property by summer, rail contractors could seek delay damage claims of $90,000 a day, or $2.7 million a month.