SALEM, Mass. -- State officials have been planning to build a new $106 million court complex in Salem, but they've run into a big obstacle.

NewsCenter 5's Pam Cross reported that part of the First Baptist Church sits right in the middle of the proposed development.

The original idea called for preservation of the church building, which has been in Salem for 200 years. It was supposed to be incorporated into the new complex, but now they may build around it.

"Now, we are at the point where we have to put the pieces of land together, and the church has been non-responsive, if you will, to what I think has been a very reasonable offer by the state," Rep. John Keenan said.

There wasn't much at the site in 1806 when First Baptist Church picked the location. The $106 million state project would unite three different court buildings and move the old church building for use as a law library.

"There's enough space to do it. It makes it a little more difficult in terms of design and in terms of the size of the building," Keenan said.

The city has offered an adjoining plot. The church was offered more than $1 million for a project the city calls vital.

"We've got to proceed. Construction costs are escalating. We are fearful that if we wait until every last detail is ironed out, we may not have a project at all," Salem Mayor Kim Driscoll

An attorney for the church said that they're willing to talk, but so far they've only gotten ultimatums and no relocation plan.

"Negotiations are simply one way. They made an offer and when we didn't respond by the date they set, to what was a low-ball offer, they changed the project," attorney James Masterman said.

State and city officials said that they're still willing to work with the church, but it's the 11th hour and the time for negotiations is nearly done.