OCEANSIDE -- To increase its local water supply, Oceanside has sued under eminent domain laws to run underground waterlines across private land.

The city filed a lawsuit Thursday against property owner Goli Enterprise Inc. Oceanside wants easements across the vacant property -- near Highway 76 and Foussat Street -- to connect two wells to the city's purification plant.

Goli's attorney, John Credell, didn't return a call for comment Friday. In January, he sent a letter to the city, saying the action could prevent the company from developing a hotel at the site.

"The acquisition by eminent domain may block the project in its entirety, change the nature of the project, change the size of the project, make the project less profitable, (and) decrease revenues to the city of Oceanside and surrounding businesses," Credell wrote.

Oceanside built the Mission Basin Groundwater Purification Facility in 1994 to make potable water from local sources. The city already has five wells producing water. The new wells, near Fire Station No. 7 on Mission Avenue, are expected to add more than a million gallons a day.

Oceanside had offered Goli $26,301 in exchange for the 1,968 square feet of permanent easement and temporary use of 11,547 square feet of land for construction. Assistant City Attorney Barbara Hamilton said Friday that she was hopeful an agreement could still be worked out, but the litigation would speed everything up.

"Our need for the water line is urgent, especially in light of the drought," she said.

The City Council authorized eminent domain proceedings in March.

Hamilton said the easements are on the periphery of the land, so the city's plans shouldn't interfere with future development.

The city of Carlsbad, San Diego Gas and Electric Company and the Fallbrook Sanitary District are also named as defendants because of possible interests in the property.

Call staff writer Craig TenBroeck at 760-901-4062.