City’s suit against developer can proceed
Judge denies Milligan’s motion for dismissal
NORWALK — A Superior Court judge ruled against local developer Jason Milligan’s motion to dismiss a lawsuit the city filed against him last year.
The Norwalk Redevelopment Agency and the City of Norwalk filed the lawsuit against Milligan and his companies, arguing they believed the developer had illegitimately purchased two properties in the Wall Street redevelopment area.
Milligan and his multiple companies, including Wall St Opportunity Fund LLC, Komi Ventures LLC and Milligan Real Estate LLC, filed a motion to dismiss the case in March. The defendants argued the city and agency “lacked the standing” to continue trying the case, because the redevelopment plan that the land disposition agreement (LDA) governing the property was based on had expired.
The court ruled, however, that this position was “untenable.”
“Whatever the status of the LDA now, there can be no question that the LDA and the 2004 Plan were in effect prior to June 2018,” Superior Court Judge Charles Lee wrote in his decision on Tuesday. “The City and Agency seek remedies for various violations
that occurred prior to the amended expiration date of the 2004 Plan and any impact on the LDA.”
The lawsuit will continue in Superior Court in Stamford, although no dates have been scheduled.
Milligan said in a statement on Tuesday that the ruling was “disappointing,” particularly because of the legal fees. The agency and city are being represented by Shipman and Goodwin, specifically Attorney Joseph Williams, whom Milligan referred to as “Crony Joe.”
“Judge Lee’s ruling is disappointing mostly because it might give Crony Joe false hope that he could somehow justify the $750,000 of taxpayer money wasted on legal fees based upon his bad advice,” Milligan said. “There is zero reason to continue enriching Crony Joe and his large Law Firm. There is absolutely no imminent or irreparable harm.”
Norwalk Corporation Counsel Mario Coppola said in a statement that the dismissal will allow the case to move forward.
“Today the court ruled in favor of the City and Agency, and denied Milligan’s most recent motion to dismiss the case,” Coppola said. “Today’s ruling was the second time so far in this case that the court denied a motion to dismiss filed by Milligan. Now the City and Agency will continue to learn a lot more about what has trans
pired through the discovery process, and will ask the court to enter appropriate relief based on the evidence that we present at the pending injunction hearing and then the trial.”
Coppola said Milligan has “engaged in a legal strategy aimed at delaying the case from getting adjudicated by the court and running up the cost of the litigation through continuous and welltimed motion practice challenging the court’s jurisdiction.”
The lawsuit stemmed from Milligan’s purchase of the properties at 21, 23 and 31 Isaac St. as well as those at 83 and 97 Wall St. from ILSR Owners LLC, also known as POKO Partners, which were supposed to be part of the stalled Wall Street Place Development.
The properties were part of a 2007 land disposition agreement, which provided benefits to the developer and required approval from the Redevelopment Agency before ownership can be transferred.
Because of that, the city and agency pursued legal action to prevent the sale of the properties. The properties were originally slated to be part of upcoming phases of the development.
Municipal Holdings LLC, a subsidiary of Citibank, took over ownership of the project from developer POKOIWSR Developers LLC in July 2017. POKOIWSR Developers had started construction in June 2015 and construction was halted the following year. The project has since sat halfdeveloped, covered in Tyvek construction wrapping and has been a matter of contention in the city.
In July, JHM Group, the new developer of the property, presented plans to put 101 workforce apartments, with a mix of income caps of different levels and firstfloor retail sites. The plan called for demolition of the Garden Cinemas property for parking space, which has been one of the most controversial aspects, with many community members voicing opposition to that aspect and over 2,000 signing a petition to save the theater. Others have raised concerns with the affordable housing tax credits the developer was planning to use to fund the project.
Common Council tabled a vote on the proposal in July, after asking the developer to look into the design of the building as well as potential ways to save the Garden Cinema or keep a cultural arts center in the area. Talks have been ongoing, according to city officials, but no new proposals have been brought forth to the public yet.
Milligan said he wants to see the ongoing conversations continue.
“From the beginning, the only way to a timely worthwhile solution to the POKO mess is through open, honest discussion and negotiation,” he said in a statement. “Recently, there has been ongoing conversation between all relevant parties. Hopefully that communication can continue. It cannot continue while enormous legal battles are simultaneously taking place.”