The Sacramento Kings' ownership has been unable to close on buying the remaining parcel at Downtown Plaza to develop a new arena after months of negotiations.
The Kings are attempting to open a new facility by 2016 and are now seeking assistance from City Hall to threaten eminent domain.
The property houses a Macy's men's clothing and furniture store that was taken control by a New York-based real estate firm in foreclosure.
"Any decision for something like eminent domain wouldn't happen for a long time," said Assistant City Manager John Dangberg.
The Kings plan to partner with the city of Sacramento on constructing a $448 million facility at the site to be surrounded by shops, housing and offices.