The developer will either ask the appeals court to reconsider or appeal directly to the Michigan Supreme Court. Last week, the Michigan Court of Appeals ruled the state was within the law in its decision to sell the property in York Township in Washtenaw County to Toyota for $9 million. DPG bid $25 million.

Gov. Jennifer Granholm and other state leaders say they prefer the Toyota deal because Toyota would develop an automotive research and development center on the property, creating hundreds, or even thousands, of high-paying jobs. DPG plans to develop the property primarily for residential use, with some retail or other commercialuse.

McKenney says the court erred when it ruled the state was mandated to look at other factors besides the price offered. The appeals court agreed with the state and rejected a constitutional challenge by the Oakland County developer. DPG-York says state law required Michigan to accept the high bid for the deal. DPG filed suit after its bid was rejected in September 2004.