Lawsuit filed over N.O. World Trade Center developer's right to

New Orleans CityBusiness, Sep 24, 2008 by Ariella Cohen

The law firm representing the New Orleans World Trade Center has filed a lawsuit in Louisiana Eastern District Court challenging the right of a developer to reclaim a $600,000 deposit.

The deposit was put in escrow with the firm Chaffe McCall LLP by developer Full Spectrum New York LLC last year when the firm was chosen to work with the New Orleans Building Corp. and the WTC board to redevelop the iconic tower. The deposit was a requirement under a request for bid proposals on the 99-year lease arrangement.

The firm backed out of the $30 million deal last month, before signing the lease. Immediately after withdrawing their proposal, the firm asked that the money be returned, though bidding requirements described the $600,000 deposit as "non-refundable."

The federal lawsuit was filed Thursday. Judge Carl Barbier will preside over the case.

City Council President Jacquelyn Brechtel Clarkson said the lawsuit is expected to resolve the final issue related to the Full Spectrum deal and allow the WTC board and the NOBC to move foward with the redevelopment of the waterfront building.

"We are more than ready to move on," Clarkson said.

New Orleans developers Darryl Berger and Pres Kabacoff are in talks with city and WTC officials about taking over the project.

Clarkson said she opposes the doling out of any more government assistance to make the project work.

"It is a very good project for the developer and for the city too," she said.