Gotham Motown Recovery says the city so far isn’t granting a two-year extension for a plan for land along the Detroit River, including Joe Louis Arena. Gotham filed a lawsuit Monday in U.S. Bankruptcy Court.
Gotham is managed by Fidelity Guaranty Insurance Co., a bond insurer also known as FGIC. FGIC agreed to take the land in 2014 to settle its $1 billion claim against Detroit during the city’s bankruptcy. The deal includes demolishing the arena.
City attorney Lawrence Garcia says the lawsuit has “no merit.”
Gotham says Detroit’s real estate prospects have improved dramatically since the bankruptcy. The lawsuit says that success has “vastly increased” the complexity of the project.
Senior managing director Derek Donnelly said the firm is trying to do something as quickly as possible.
“This is obviously not a preferred route for anyone and we’re hopeful we can get back to the table and move this project forward successfully,” Donnelly said.
“At the end of the day, we want to get this right and we think that this makes sense for the city as a whole. The idea of trying to accelerate or do something on an accelerated basis doesn’t make any sense to us.”
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