A city landowner on Wednesday agreed to drop its lawsuit against the Baltimore Development Corp., a legal conflict that could have slowed the city?s progress in redeveloping the Westside “Superblock.”
As part of the settlement, Lexington Square Partners LLC will pay Carmel Realty Associates $2.7 million for Carmel?s properties on West Lexington and West Howard streets in the Superblock, lawyer John C. Murphy, who represents Carmel, said in phone interview.
Carmel owns the Valu-Plus store and will move the store from the 200 block to the 100 block of West Lexington Street, Murphy said.
“They [had] wanted to stay in the 200 block because it?s close to Lexington Market,” Murphy said. “You don?t always get everything you want.”
Carmel?s lawsuit dates back to 1999, when the city took ownership of the Superblock properties through eminent domain, Murphy said.
In 2004, Carmel claimed the BDC violated open meeting and record laws when it recommended the city award Superblock redevelopment rights to Lexington Square over other potential developers.
The Maryland Court of Appeals last year ruled that the BDC violated the law and ordered the group to make its meetings public. The court also sent the lawsuit to the Circuit Court of Baltimore City to rule whether the city needed to seek additional bids for the Superblock development.
With Wednesday?s settlement, Lexington Square can proceed with its revitalization efforts as planned.
The city on Wednesday also agreed to pay Nam S. Koo $3.7 million for his Superblock properties ? including New York Fashions ? scheduled for redevelopment, said Murphy, who also represents Koo.
“We?re very encouraged that this process has moved forward with the Superblock,” Kathy Robertson, director of the Westside Initiative for the BDC, said in a phone interview. “We?re excited and looking forward to seeing development in the area.”
The Superblock is a 3.6-acre tract of land bordered by Fayette, Liberty, Howard and Lexington streets, with redevelopment plans including residential, retail and office components.
Lexington Square
The Lexington Square Partners plan is a $250 million retail and residential project that encompasses three city blocks in the Superblock. The plan includes about 312,000 square feet of retail space, a seven-story parking garage and 400 apartment units housed in two 14-story towers.
