Actually it is not a street but a small courtyard in between buildings and the Empire doesn't claim it as their own, since it is shared. They simply want to control who goes in or out in an RP sense. The Empire has quite a few enemies and it is only normal that they don't just allow anyone into a place where most of their vital members are stationed. Strangers with no reason to be there are treated with distrust and are preferably kept outside.
It's still the street. Closing up an alley and calling it your own is still
at least borderline godmodding. You might want to rethink that.
This is all roleplaying and it provides oppertunities. People are allowed inside if the Empire trusts them ... other people are still free to try and sneak past Guards. I've had an assassin sneak past me and almost kill me when I turned my back to him in there. Because I was so used to random non-RPers wandering in and ignoring them as soon as possible I thought this was one of them again so I was not on guard and expecting an RP. (bad roleplay on my part).
I hope you and your guild are ready to face the IC consequences of this. If you want to give a RP opportunity you should let ppl know that they can get involved with it somehow in the first place. For example:
Zhai walks down the street eating an apple.
Empire guy says: [btw, there's a gate by my right that leads into the building. it's half-way open and you can see there's a big cake inside]
Zhai mutters "Yummm... cake"
Now I got a reason to sneak in and get involved with your RP. My reaction could've been "Zhai shrugs and keeps walking". The choice is still mine and if I try to enter your RP space I should be ready for the consequences, like getting beaten up.
This is not about players having a feeling that the Empire is claiming areas that aren't theirs, nor about players being denied access to anything, anything at all that matters. Trust me, there is nothing at all to see in there .. except the Empire and the other guilds that are set up there.
You seem to be missing a point here: it is not about sightseeing around hydlaa. It's about the godmodding behind the fact that you can call a street your own and therefore forcing everyone around the area to see that space as yours. I know some tenants in that very same spot of town. Some have been RPing it for a while now. Were you going to act the same way if you'd bump into them walking up to their place? Imposing your RP on others is still a form of godmodding.
Well, I still think this topic does bring up some good points once we look past the ranting and we can all learn from it. Our RP is also work in progress and we gotta be flexible.
Edit: Tweaked some parts after morning coffee. Same arguments tho.