Judge dismisses $40M development lawsuit

Delray Beach will not have to pay more than $40 million in damages claimed by Atlantic Crossing, a proposed development in the heart of the city’s thriving downtown.

That’s because a federal judge dismissed the case and sent remaining nonmonetary claims to state court.

Development on the site, next to Veterans Park near the Intraand coastal Waterway, has been debated for at least seven years.

In 2014, the City Commission approved a 9-acre site plan that included apartments, offices, restaurants and shops, but has delayed several further administrative approvals needed before construction permits can be issued.

The developer, Ohio-based Edwards Cos., has accused the commission of trying to thwart the $200 million project.

On Wednesday, Don DeVere, an Edwards vice president, said the company is examining the judge’s opinion.

“We are reviewing our legal options to move Atlantic Crossing forward and secure our property rights,” he said in a statement.

The site, on the north side of Atlantic Avenue near the west side of the Intracoastal, is set to have six buildings, 82 condominiums and 261 apartments, as well as space for offices, restaurants, outdoor cafes a promenade. Some of its neighbors were initially concerned about traffic tie-ups, but announced earlier this year that they supported the project.

In April, the commission rejected a road plan designed to relieve traffic congestion in the development, leaving its future uncertain. Mayor Cary Glickstein called the yearslong approval process “torturous,” but said the road was not safe and he

was concerned about flooding in the proposed underground parking garage.

Glickstein said on Wednesday he is glad the city will not have to pay damages to the developer.

“The ruling eliminates the possibility of any federal court damage award against the city, which was the thrust of their case,” Glickstein said. “While there remain remanded state court claims the plaintiffs may still pursue, none of the pending state court claims seek monetary damages.”

Vice-Mayor Shelly Petrolia called the underused shopping center currently on the site “an eyesore” and said most Delray Beach residents want to see development at the Atlantic Crossing site.

“It’ll be there in some form one day,” Petrolia said Wednesday. “We’d like to have exactly what they’re putting before us, maybe less intense with better access. It just needs some minor tweaks.”