Miami Herald

Developer claims conspiracy blocked Overtown deal

- BY ANDRES VIGLUCCI aviglucci@miamiheral­d.com

Four years after walking away from a major redevelopm­ent in Miami’s struggling Overtown neighborho­od, prominent developer R. Donahue Peebles is now alleging he was pushed out of the project in a “conspiracy” cooked up by city Commission­er Keon Hardemon, a relative, other city officials, and a competing developer.

The startling and unsubstant­iated claim is laid out in a 100-page lawsuit that Peebles and his partners filed against another prominent developer, Michael Swerdlow, who recently announced plans to build a massive commercial and residentia­l project with a Target store on publicly owned vacant land in Overtown. Swerdlow’s company won a competitiv­e bid from the city’s Southwest Overtown/Park West Community Redevelopm­ent Agency to purchase one of two CRA-controlled lots that Peebles had planned to build on.

Peebles secured a bid in 2013 to develop the lots, but surrendere­d one bid in 2016 after failing to come to a developmen­t agreement with the agency. The

CRA then canceled his bid on the second, saying he had failed to meet deadlines, and sought new proposals for the property, known as Block 55. Peebles did not file bid protests at the time.

But in his suit, Peebles and his Overtown Gateway Partners, including Miami developer Barron Channer, claim Swerdlow secretly worked to block their developmen­t plans in a conspiracy with a group that included agency chairman Hardemon and the commission­er’s uncle, influentia­l activist and consultant Billy Hardemon. The same group then conspired to award Swerdlow the new bid for Block 55, the suit claims.

The suit offers little proof for the claims.

Peebles, regarded as one of the leading AfricanAme­rican developers in the country, is seeking $160 million for lost profits and damages. The lawsuit names only Swerdlow, his developmen­t company Downtown Retail Associ

ates, and partner Alben Duffie as defendants. But it says the Hardemons and others could be added as defendants and contends some of their actions could be criminal in nature.

Alan Kluger, an attorney for Swerdlow, called the claims by Peebles and Channer baseless.

“Like many lawsuits filed by Don Peebles over the years, this claim is without merit,” Kluger said in a statement. “Peebles and Barron Channer made an early attempt to develop the Block 45 and Block 55 sites in 2013, but they were unable to fulfill their obligation­s to the Overtown/Park West CRA and their plans were ultimately terminated. The CRA then undertook a public RFP process, which Downtown Retail Associates undisputed­ly won. Seeing that Peebles and Channer have no legitimate claim against Downtown Retail Associates, their 11th hour attempt at litigation is nothing more than a brazen act to extract dollars from the pockets of Block 55’s developmen­t team.”

In an email, Commission­er Hardemon said he played no role in the failure of Peebles’ plans.

“The CRA has partnered with many developers to produce thousands of units of affordabil­ity in Overtown,” Hardemon wrote. “Here, it seems that this developer failed to produce and wishes to place the blame elsewhere. I had no role whatsoever in the demise of their developmen­t plan. I remain steadfast in elevating the quality of life for the residents in Overtown and look forward to the communitie­s advancemen­t.”

Billy Hardemon expressed incredulit­y over the lawsuit and its timing in the middle of a virus pandemic, stressing that he had publicly supported Peebles’ developmen­t plans in Overtown. He said he also vocally supported Peebles’ earlier, successful bid from the city of Miami Beach to develop the Royal Palm Crowne Plaza Resort on Collins Avenue as a convention hotel to end a three-year boycott by black tourists. But the project led to years of legal disputes between the developer and the city before Peebles sold it to a white-owned developmen­t group in 2004.

“I’ve always admired

Don Peebles,” Billy Hardemon said. “I was a foot soldier in the campaign for him getting that hotel. I have nothing but respect for Don Peebles.”

But, he said of the lawsuit: “Its such a damnable lie. It’s ridiculous. The only reason they’re putting Keon’s and my name in it is to get this into the Miami Herald. This guy is telling a bald-faced lie to cover the failure of his deal. Everyone is focused on the pandemic and these guys, God bless, they’re focused on money.”

It’s not the first time that someone has claimed that the Hardemons have acted in concert to influence city actions.

In a 2019 lawsuit, accountant Michael Siegel claimed the Miami commission took away his right to erect giant advertisin­g murals on a building next to Interstate 95 that’s owned by his family after he declined to hire Billy Hardemon as a consultant. That suit is pending.

The Peebles suit and the virtual shutdown of business because of the coronaviru­s pandemic might jeopardize the Swerdlow project, which had been hailed as a major breakthrou­gh in efforts to bring new residents and economic vibrancy to the heart of long-suffering Overtown.

The suit was filed March 26 in Miami-Dade Circuit Court, three days before Swerdlow was scheduled to close on the purchase of Block 55. The closing did not take place, a spokesman for Swerdlow said. Sometime before the suit was filed, developer David Martin of Terra Group, who had joined the Swerdlow project as a partner, pulled out for unknown reasons.

The Peebles suit stems from years of fitful, partially successful efforts by the Overtown CRA, which was set up to help revitalize the historical­ly black neighborho­od, to redevelop several large vacant lots just east of I-95. After Peebles won a competitiv­e bid to develop one set of properties, the CRA — chaired at the time by then-Commission­er Michelle SpenceJone­s — persuaded the developer to split that project with the second-ranked bidder, All Aboard Florida, the parent company of the Brightline train service.

But while All Aboard built a new office headquarte­rs and parking garage on the site, Peebles’ plans for the lot next door foundered. When Peebles signed a letter giving up his right to develop the property, Channer said the developers could not come to an agreement with the CRA. The agency’s then director, Clarence Woods, said Peebles had been unable to obtain financing, a claim that the developers did not dispute.

That lot was owned by Miami-Dade County, which took back control after the Peebles plan failed. It was recently awarded to another developer for a project.

Peebles also won a bid for a second lot, Block 55.

In their lawsuit, Peebles and Channer contend that after Keon Hardemon was elected to succeed SpenceJone­s, he and his uncle recruited Swerdlow and Duffie and, by continuall­y delaying needed approvals, forced Peebles into a partnershi­p with them. Billy Hardemon, the suit claims, was effectivel­y running the agency “through shadow influence” through his nephew.

Peebles claims Swerdlow violated his agreement with his group and “defrauded” them by going behind their back, working with CRA officials to get them pushed out and gain sole control of Block 55, actions that the suit terms “possibly illegal.”

 ?? Swerdlow Group ?? A rendering shows how a planned $350 million retail and apartment complex in Overtown would look from I-95.
Swerdlow Group A rendering shows how a planned $350 million retail and apartment complex in Overtown would look from I-95.
 ??  ??

Newspapers in English

Newspapers from United States