Developer wants New Orleans World Trade Center deposit back

New Orleans CityBusiness, Sep 29, 2008

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

New York-based developer Full Spectrum put the deposit in escrow with the firm Chaffe McCall last year when the developer was chosen to work with the New Orleans Building Corp. and the WTC board to redevelop the 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 "not refundable." The deposit would have been applicable to the lease payment had the developer moved forward with the lease.

Judge Carl Barbier will preside over the suit filed Sept. 18.

City Council President Jackie 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 forward 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.