Sore Losers or Do They Have A Point? Developers Who Lose World Trade Center Bid Sue City

by • May 7, 2015 • Central Business District, Hotel & Hospitality, Legal, NewsComments (3)2804

Rendering via Carpenter & Co.

Rendering via Carpenter & Co.

One of the groups competing for the right to redevelop the city-owned World Trade Center has sued the city and asked the judge to scrap the process that just concluded in awarding the building to developers that will convert it to a Four Seasons.

Two Canal Street Investors, made up of the Valencia Group of Houston, Dallas-based Woodbine Development Corp., Monday Properties of New York and developers Steven Peer and Peter Arey, have sued the city in a lawsuit filed April 23 in Orleans Parish Civil District Court.  The group argued that they should have been awarded the project because their proposal included a $65 million upfront payment, the largest offer to the city.

Two Canal Street Investors had plans for Hotel Alessandra, which would have included 318 keys, 240 luxury apartments, an upgrade to the Canal Street ferry terminal and Spanish Plaza, a Louisiana Maritime Museum and a jazz lounge on the 33rd floor in partnership with Kermit Ruffins.  Read the full proposal here.

The lawsuit claims that the consultants hired by the city manipulated the proposals, that their process was flawed, and that there bid, if calculated correctly should have been valued at $100 million more than the Four Seasons.

The initial hearing in front of Judge Tiffany Chase is set for June 11.  You can read the actual lawsuit here.

 

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3 Responses to Sore Losers or Do They Have A Point? Developers Who Lose World Trade Center Bid Sue City

  1. […] facts are big and easy to grasp. Pre-qualified bidder TCSI offered $65 million upfront for the WTC lease, but the Four Seasons team snagged the desirable site for $5 million, $60 […]

  2. […] Canal Street Investors Inc. first filed a comprehensive lawsuit against the city last April, to expose flaws in the city’s RFP process and stop the WTC project from going forward. This […]

  3. […] lawsuit filed by the would-be World Trade Center developers against the city is proceeding as planned, and is now scheduled for a trial in […]

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