Dearborn is demanding Burton-Katzman complete the project, and is asking for damages of over $21 million, including half a million dollars for unpaid taxes, plus penalties and interest. The damages will help cover the cost the city incurred to build the two parking decks that were constructed to serve the West Village Commons development. The city originally filed the lawsuit in January.
Burton-Katzman has countered that the state's woeful economy is to blame for the project's stillbirth. The developer claims that new condominium and business space is unnecessary in a real estate market that is already saturated with empty properties..
Luckily for the city, Wayne County Circuit Judge Michael Sapala was not swayed. He ruled in the city’s favor last Thursday, and rejected Burton-Katzman’s claims. The judge suggested that the developer did not act in good faith in their dealings with Dearborn, and never even attempted to get financing for the project. The developer must now complete the promised buildings in a 'timely manner.'
“It’s great news for Dearborn,” Walling told the Press & Guide.
Read the complete report in the Dearborn Press & Guide here .
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3 comments:
Just a thought: why didn't these folks have to post a performance bond? After all, the building department has required exorbitant escrows for ordinary systems rehabbing homes. Shouldn't our legal department which is 7 lawyers strong have suggested this so that we wouldn't have to go chasing them down if they don't live up to their end of the deal? Good luck with getting any money out of BK or forcing them to complete their contract, Ms. Walling and oh yeah, how much has this cost in legal fees?
Wouldn't it have been a better idea to ask for a cash settlement? If they had, they could have used it to tear down the buildings that need to be taken down and, at least, the area would look better.
Now, instead, we will have more empty buildings standing. I really don't see how building more space will help when we can't lease out what we already have.
OOPS, I wrote "systems" instead of "citizens". Sorry
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