120 West Fayette Street, LLLP v. Mayor of Baltimore City

992 A.2d 459, 413 Md. 309, 2010 Md. LEXIS 139
CourtCourt of Appeals of Maryland
DecidedApril 13, 2010
Docket96 September Term, 2009
StatusPublished
Cited by40 cases

This text of 992 A.2d 459 (120 West Fayette Street, LLLP v. Mayor of Baltimore City) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
120 West Fayette Street, LLLP v. Mayor of Baltimore City, 992 A.2d 459, 413 Md. 309, 2010 Md. LEXIS 139 (Md. 2010).

Opinion

BARBERA, Judge.

In this appeal, we consider for the second time the controversy between 120 West Fayette Street, LLLP (“120 West Fayette”) and the Mayor and City Council for Baltimore City et al. (“the City”), in which 120 West Fayette alleges that the City illegally entered into a Land Disposition Agreement (“LDA”) to sell to Lexington Square Partners, LLC property in Baltimore’s westside known as the “Superblock.” When we first considered this case in 120 West Fayette Street, LLLP v. Baltimore, 407 Md. 253, 964 A.2d 662 (2009), we held that 120 West Fayette had standing to challenge the LDA and that the Circuit Court for Baltimore City had erred in treating the City’s motion to dismiss as a motion for summary judgment. Id. at 258, 964 A.2d at 664-65. This case’s current incarnation arises in response to the Circuit Court’s grant of summary judgment in the City’s favor on 120 West Fayette’s original complaint and that court’s grant of the City’s motion to dismiss Count Two of 120 West Fayette’s amended complaint. For the foregoing reasons, we shall affirm the judgment of the Circuit Court.

I.

“In 1999, the Baltimore City Council enacted an urban renewal plan 1 for the westside of downtown Baltimore. The *318 renewal plan, known as the ‘Market Center Urban Renewal Plan,’ [“the Renewal Plan”] has been advertised as Baltimore’s largest urban renewal plan since the plan to revitalize the city’s Inner Harbor.” Id. at 258-59, 964 A.2d at 665. At issue in this case is an area within the westside redevelopment area known as the “Superblock.” “The ‘Superblock’ encompasses five blocks and is bound by Fayette Street, Howard Street, Lexington Street, Clay Street, and Park Avenue.” 2 Id. at 259, 964 A.2d at 665.

“To implement [the Renewal Plan], the Baltimore Board of Estimates (“BOE”) delegated ‘ministerial and administrative’ functions to a nonprofit corporation known as the Baltimore Development Corporation, Inc. (“BDC”).” Id. at 258-59, 964 A.2d at 665. The BDC is a not-for-profit corporation created, among other reasons, “[t]o develop and implement long-range development strategies for commercial, industrial, office, residential, and other development in the City of Baltimore[.]” Baltimore Dev. Corp. v. Carmel Realty Assocs., 395 Md. 299, 309, 910 A.2d 406, 411 (2006) (quoting Amended Articles of Incorporation of the City of Baltimore Development Corporation, ART. FOURTH, October 4,1991). The BDC is governed by a board of directors comprising “not less than seven (7), nor more than fifteen (15) directors,” including the Commissioner of the City’s Department of Housing and Community Development and the Director of the City’s Department of Finance. Id. at 325 n. 17, 910 A.2d at 421-22 n. 17 (quoting SECTION 1 of the BDC’s bylaws as amended on November 4, *319 1997). Those directors not named in the bylaws, including the chairman of the board, are nominated by the Mayor of the City and elected by the corporation’s members. Id., 910 A.2d at 421 n. 17. The Mayor also has the authority to remove directors and fill vacancies on the board until the expiration of the absent director’s term. Id., 910 A.2d at 422 n. 17.

In Carmel Realty, we recognized that the Mayor, by virtue of the above-mentioned authority, effectively controls the BDC’s board of directors. Id. at 326, 910 A.2d at 422. In this case, the BDC’s relevant responsibility was to orchestrate the development and revitalization of the City-owned properties subject to the Renewal Plan, including the “Superblock.” To that end, “[t]he City asserts that it instructed the BDC to ‘work with developers and interested groups regarding the development of the westside, prepare and issue requests for development proposals, arrange and attend meetings between developers and business owners, and coordinate financial assistance.’ ” 120 West Fayette St., 407 Md. at 259, 964 A.2d at 665.

On October 27, 2003, the BDC issued a Request for Proposals (“RFP”) soliciting proposals from experienced real estate developers to develop the “Superblock.” The RFP provided that the BDC, on behalf of the City, was “seeking developers who [were] willing and able to develop [the “Superblock”] ... in accordance with revitalization objectives and goals as stated [in the RFP], as well as the rules and regulations for standards and controls established by the Mayor and City Council ... and implemented by the BDC.” In addition to other rules and regulations, the City’s efforts to redevelop the “Super-block” are subject to a Memorandum of Agreement (“MOA”) between the Mayor and City Council of Baltimore City, and the Maryland Historical Trust (“MHT”). Among other things, the MOA provides that in all City-issued RFPs “the City will use reasonable efforts” to preserve certain City-owned or acquired historic properties within the relevant development area.

*320 Accordingly, the RFP provided, in part, that the proposed “[development should conform to the Memorandum of Agreement (MOA) executed between the City and the Maryland Historical] Trust ... and The West Side Strategic Plan.” The RFP also provided that the selected developers would receive an Exclusive Negotiating Privilege (“ENP”), which guaranteed them the exclusive privilege of negotiating a Land Disposition Agreement (“LDA”) with the City. 3 During the ENP’s term, the privileged developers would be granted an opportunity to enter the property and conduct any activities necessary to satisfy the City’s requirements within the ENP. After the expiration of the term, the City could extend the time period if negotiations were “proceeding satisfactorily.”

In response to the RFP, the BDC received proposals from four competitive development teams and responded to each of those development teams with written questions. Additionally, each development team presented its proposal to BDC staff and members of the WestSide Renaissance and the MHT. 4 Among the prospective development teams was Next Genera *321 tion Chera, LLC (“Next Generation”), with which the Mayor, members of the BDC, and members of the WestSide Renaissance met prior to awarding an ENP, on June 24, 2005, to Lexington Square Partners, LLC (“Lexington Square”), an affiliate of Next Generation. 5 The ENP lists the signatories as the Mayor and City Council of Baltimore, on whose behalf the president of the BDC signed; Lexington Square, represented by its managing member’s signature; and the City’s Chief Solicitor, who signed on his own behalf.

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Bluebook (online)
992 A.2d 459, 413 Md. 309, 2010 Md. LEXIS 139, Counsel Stack Legal Research, https://law.counselstack.com/opinion/120-west-fayette-street-lllp-v-mayor-of-baltimore-city-md-2010.