Unfortunately, a lack of ethics and moral character does not provide a basis for legal action unless a financial loss is incurred and a legal obligation has been violated. You may also wish to file a complaint with your state real estate licensing authority. Also I would like to know what a paper alley is. The alley may never have been constructed or may have been abandoned sometime in the past. Hence, it exists on paper but not in reality.
Adverse possession is the right of an occupant of land to acquire title against the real owner.
To acquire title, possession must have been continuous, hostile, visible and exclusive. Each is a legal requirement with special meaning in law. The time of possession, before making a claim of ownership, varies from state to state. In Colorado, it is basically 18 years but only seven years if the occupant has paid the property taxes. As you may imagine, the other side to such a claim tends to oppose any effort to claim their land.