Westmont Development Group, LLC v. Township of Haddon

625 F. Supp. 2d 178, 2009 U.S. Dist. LEXIS 49771, 2009 WL 1661753
CourtDistrict Court, D. New Jersey
DecidedJune 15, 2009
DocketCivil Action 07-5846 (JEI/JS)
StatusPublished
Cited by5 cases

This text of 625 F. Supp. 2d 178 (Westmont Development Group, LLC v. Township of Haddon) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Westmont Development Group, LLC v. Township of Haddon, 625 F. Supp. 2d 178, 2009 U.S. Dist. LEXIS 49771, 2009 WL 1661753 (D.N.J. 2009).

Opinion

OPINION

IRENAS, Senior District Judge:

This is an action by Plaintiff Westmont Development Group (“WDG”) alleging Breach of Contract, Breach of the Duty of Good Faith and Fair Dealing, and Negligent Misrepresentation by Defendants Township of Haddon, Mayor Randall W. Teague, Commissioner John C. Foley, Commissioner Paul Dougherty (collectively “Township Defendants”), and Camden County Improvement Authority (“CCIA”).

Presently before the Court are Motions for Summary Judgment and to Dissolve Temporary Restraints by the Township Defendants, and a Motion to Dismiss by CCIA. For the reasons stated below, the Court will grant Defendants’ Motions. 1

*180 I.

The Township of Haddon (“Township”) is a municipality in Camden County, New Jersey, governed by a Board of three Commissioners, one of whom is designated as the Mayor. (Pl.’s 56.1 Stmt. 2 ¶ 1) The Township also has a Planning Board, which is an independent governmental body from the Township. 3 (Twp. Defs.’ Ex. 9 — Donald C. Cofsky Dep. 6:19-20) This litigation pertains to a failed contract between the Township and WDG for the redevelopment of the “Westmont Theater property,”- — -a tract which is part of the physical and emotional “heart” of the Township. (Twp. Defs.’ Ex. 1 (Attach. A) — Redevelopment Plan 3, 8-9)

Section I, Part A discusses events preceding the execution of the redevelopment contract by the Township and WDG; Part B focuses on the parameters of that contract, and WDG’s performance thereunder; Part C addresses WDG’s struggle to obtain adequate parking to support its redevelopment plans; Part D describes the negotiations by WDG and the Township to amend the original redevelopment contract; Part E discusses the change in Township leadership that occurred in May, 2007, and the resultant impact on WDG; and Part F summarizes the procedural history in this matter to date.

A.

The background of this litigation begins with a November, 1998, purchase-leaseback agreement between the Township and the CCIA for the Westmont Theater property. 4 (See Twp. Defs.’ Ex. 1 (Attach. B)- — Lease Purchase Agreement) Pursuant to that agreement, the Township transferred title to the Westmont Theater property to the CCIA. (See Twp. Defs.’ Ex. 1 (Attach. B) — Deed of Sale, Nov. 17, 1998; PL’s Ex. 12 — Catherine M. Ward Dep. 19:2-6) In return, the CCIA provided financing to the Township for improvements on the theater. (Lease Purchase Agreement 1; Ward Dep. 19:6-9) The CCIA funded- the project by issuing $700,000 in bonds. (Lease Purchase Agreement 1; see -Ward Dep. 19:14-15, 20:6-9) The CCIA leased the property back to the Township, thus the Township retained physical control of the premises. (Ward Dep. 19:9-11) The agreement provided for the Township to repurchase the theater from the CCIA once the bonds were fully repaid. (Lease Purchase Agreement § 5.9; Ward Dep. 19:11-13) For present purposes, the key consequence of the purchase-leaseback agreement is that CCIA currently holds title to the Westmont Theater. (See PL’s 56.1 Stmt. ¶ 3)

On November 26, 2002, the Township adopted a “Redevelopment Plan” which called for the redevelopment of an area known as the “Haddon Avenue corridor.” (PL’s 56.1 Stmt. ¶ 2) Described generally, the Redevelopment Plan was intended to “create and recreate a mix of uses and generalized environment that will encourage ... the pedestrian shopping, dining and entertainment experience.” (Twp. Defs.’ Ex. 1 (Attach. A) — Redevelopment Plan 4) The plan identified three major *181 redevelopment sites as comprising the Haddon Avenue corridor: (1) Parcel “A”— the Dy-Dee Site; (2) Parcel “B”- — the Russell Stone property; and (3) Parcel “C”— the Westmont Theater property. (Redev. Plan 7-9) When the Redevelopment Plan was adopted, as now, a vacant theater sat on the Westmont Theater property. (See Redev. Plan 8-9) The plan designated the Township Commissioners as the entity to implement its provisions, and authorized the Township to contract with a redevelop-er, if necessary to achieve implementation. (Redev. Plan 13)

In 2003, Joanna Pang, a principal of WDG, 5 was seeking a location suitable for opening a new live entertainment venue, and became interested in the Westmont Theater as a potential site for that project. (Pl.’s Ex. 1 — Joanna Pang Dep. 61:15, 63:6-8) Pang was familiar with the entertainment industry from her role as President of Joon Associates, an entity which operated the Trocadero Theater in Philadelphia, Pennsylvania. (See Pang Dep. 23:19-25, 24:14-15, 25:12-25) An “introductory” meeting was arranged between Pang and William Park, then-Mayor of the Township, to gauge the Township’s interest in Pang’s idea for the theater. (Pang Dep. 61:8-18, 69:2-4) The Township subsequently instructed WDG to submit a formal concept plan for the proposed redevelopment of the Westmont Theater property. (Pang Dep. 74:20-75:4)

Under cover of letter dated December 4, 2003, WDG submitted the requested “concept plan” to the Township. 6 (Twp. Defs.’ Ex. 1 (Attach. C) — -Concept Plan; Pang Dep. 75:5-6; see Pl.’s Ex. 24 — Township of Haddon Resolution No. 2004-055, May 18, 2004 (“[T]he Redeveloper has proposed improvements to portions of the Redevelopment area ... as set forth in the concept plan submitted to the Township dated December 4, 2003.... ”)) WDG was subsequently appointed as the redeveloper for the parcel — a precursor to formal contract negotiations between WDG and the Township. (Resolution No. 2004-055; Pang Dep. 78:3-7)

B.

WDG and the Township entered into a “Redevelopment Agreement” which became effective on May 26, 2004. (Twp. Defs.’ Ex. 1 — Redevelopment Agreement) A number of provisions in that contract merit particular attention. First, the contract provided for a sixty day due diligence period, during which WDG was to conduct any inspections necessary to determine whether it wished to proceed forward with the agreement. (Redev. Agreement § 3) If WDG identified an unsatisfactory condition existed during that period, it was permitted to terminate the agreement. (Id.)

Assuming that WDG did not terminate the agreement, it was required to prepare and submit to the Township a proposed “Redevelopment Project Plan” by September 26, 2004. (Redev. Agreement § 4) The term “Redevelopment Project Plan” was defined as follows:

those plans and specifications adequate to enable the Township to understand the scope of the planned Redevelopment and operation of the Westmont Theater as a live entertainment venue and shall include, at a minimum, the following: (i) *182

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625 F. Supp. 2d 178, 2009 U.S. Dist. LEXIS 49771, 2009 WL 1661753, Counsel Stack Legal Research, https://law.counselstack.com/opinion/westmont-development-group-llc-v-township-of-haddon-njd-2009.