Lawsuits could halt property development

1/27/2016 | Real Estate Blog

We have mentioned in previous posts that developers seeking to transform a piece of property may face many challenges. Sometimes those challenges take the form of a lawsuit. A developer attempting to develop a mixed-use project, in a Philadelphia area community, knows this all too well. In an effort to block state funding for the project, a citizens group filed a lawsuit designed to block funds received from the state.

The $56 million project involves the Ardmore, Pennsylvania, train station and a neighboring parking lot. In addition to retail space, the development is slated to include a garage and apartments. To assist in funding the project, the state awarded $10.5 million from the Redevelopment Assistance Capital Program.

The project is not a new one. Work on the development, designed to serve as a link between two parts of the community, commenced in 2008.

The coalition that filed the lawsuit alleged the money awarded was a misappropriation of the state’s funds. Rejecting several of the arguments made at trial by the Save Ardmore Coalition, the Commonwealth Court of Pennsylvania dismissed the case with prejudice. As a result of this ruling, the coalition cannot amend its claims to maintain the claims.

This is just one of many issues that a developer could face in the course of a project. While in this particular situation, the life of the project was actually at stake, the impact the issues could have on the outcome of a project will vary depending on the specific situation. In most cases however, it is advisable for the parties involved in the development to have knowledgeable legal representation.