The owner of the sprawling South Philadelphia lot where
Bart Blatstein has proposed an apartment and retail complex sought in court
Tuesday to free itself of its contract with the developer so the property can
be sold to another buyer.
Blatstein no longer has any legal claim to the South
Broad Street site after missing a March 15 deadline to complete his purchase of
the land, John A. Guernsey, a lawyer for New York-based owner Hudson Realty Capital
L.L.C., said during a Common Pleas Court hearing in Philadelphia.
Hudson has already identified parties willing to pay more
than the $18 million for which Blatstein had the roughly five-acre site under
contract in their original October 2013 agreement, which was not contingent on
zoning approvals, Guernsey said.
The real estate investment firm also is entitled to
$800,000 in deposits that Blatstein had placed in escrow to secure the
property, Guernsey said.
Broad & Washington L.P., the affiliate of Blatstein's
Tower Investments Inc. that had been under contract with Hudson, is
"obligated to walk away," Guernsey said. "They are done."
Blatstein's proposal for the northeast corner of Broad
Street and Washington Avenue calls for a 32-story tower and an outdoor shopping
mall atop a city-block-sized podium of larger-format retail and parking.
Earlier Tuesday, Philadelphia's five-member Zoning Board
of Adjustment voted unanimously to grant the developer exceptions required to
build the project as planned. The board voted despite a request Monday from a
Hudson Realty representative to delay its ruling while the litigation was
resolved.
City Councilman Kenyatta Johnson, whose district includes
the development site, has proposed legislation to bar construction on the land
for a year, citing community opposition. His bill has not progressed since its
May 12 introduction.
During Tuesday's court hearing, Blatstein lawyer William
A. Harvey accused Hudson and its lawyers of meddling behind the scenes by
disputing Blatstein's interest in the property in letters to the zoning board
and Johnson's office.
Harvey said that the purchase agreement between Blatstein
and Hudson should be interpreted as continuing beyond the March 15 settlement
date, and that his client had been in contact with the investment firm during
the intervening months as he pursued zoning approvals for the site.
Hudson wanted those approvals in place when it backed out
of its deal with Blatstein because they would "materially enhance the
value of the property," Harvey said. "They wanted to inspire us to
continue to spend hundreds of thousands of dollars to get those
approvals."
Judge Patricia McInerney said at the hearing's close that
she would take the testimony under advisement.
Blatstein said after its adjournment that he was grateful
for the zoning board approval and undeterred by the legal wrangling.
"I'm optimistic that we'll be the developers of the
property," he said.
Source: Philly.com
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