Feb. 15–A Louisiana appeal court has upheld the dismissal of a lawsuit over the city's lease of the World Trade Center building to a Four Seasons developer, although the disgruntled investor who claims the city's selection process was flawed intends to appeal to the state Supreme Court.
The Fourth Circuit Court of Appeal refused Wednesday (Feb. 15) to overturn Orleans Civil District Judge Tiffany Chase's decision to throw out the case in November.
Florida real estate investor Stuart "Neil" Fisher and his company, Two Canal Street Investors, sued the city and the New Orleans Building Corp. in April 2015 to block the city's lease of the 33-story building to a development team led by Carpenter & Co. of Cambridge, Mass., and Woodward Interests of New Orleans.
On Wednesday, the Fourth Circuit ruled that the dismissal was warranted because Two Canal Street Investors failed to appear for a Nov. 20 trial, "engaged in a pattern of dilatory tactics and abuses of process including failing to produce Mr. Fisher for his deposition," and delayed redevelopment of property that is key to economic development in the city, according to a concurring opinion written by Judge Rosemary Ledet.
The Carpenter-Woodward team, which has already signed the 99-year lease, plans to renovate the tower into a $360 million Four Seasons 350-room hotel with 76 hotel-serviced condos — although construction was put on hold until the lawsuit is over. Carpenter-Woodward's pitch was the winner in the city's competition for the lease.
Two Canal Street Investors was one of four finalists that lost out to the Four Seasons team. A selection committee set up by Mayor Mitch Landrieu's administration evaluated the five proposals for converting the vacant officer tower into a hotel-residential building with help from consultants, and the committee made a recommendation to the New Orleans Building Corp., a property development arm of the city that holds title to the riverfront tower.
Two Canal Street Investors filed the lawsuit after the original members of the company sold out to Fisher for $10, once the selection process was over.
The Four Seasons development team, which intervened in the lawsuit, has pointed to that transaction, arguing Two Canal Street Investors is a shell company Fisher is using to hold up the project in hopes of obtaining a financial settlement.
Fisher has insisted the city's bid process was flawed and has accused the city of corruption. "The battle is far from over," Fisher said in an email Wednesday.
The Carpenter-Woodward team has been forced to delay the start of the massive renovation but recently began soil testing in the area in preparation for the project.
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