A 226-metre site behind the Central Hotel is needed to complete construction of a Woolworths supermarket and speciality shops and provide traffic access to Beaconsfield-Emerald Road.

But the landowner was asking council to pay $210,000 for the land, which would mean up to $8 million a hectare, despite council valuations coming in at about $12,000.

Central Ward councillor Brett Owen said the impact of traffic movement at the site made it neccessary to make sure the access road would be built.

"If access doesn't occur it will cause major traffic problems."

He said the council's efforts over past years to buy the land, and settle issues, had been hampered by the land owner, not the hotel licensee.

"The council has valued the land at $12,000 but the owner wants $210,000. This is just unreasonable, so council has no choice but to take this path."

"We are talking about a very small percentage of the total site - only 3.9 per cent."

Under the Land Acquisition and Compensation Act, the council can acquire a carriageway easement to provide access to the development.