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Galleria developers
By Susan Kreifels
sued by prospective tenant
Star-BulletinA prospective tenant for the long-promised Galleria Shopping Center at the downtown post office has sued the developers for lying about having the finances to renovate the historic building and not refunding almost $50,334 in security deposits after the tenant terminated the lease.
The Living Seas Cafe & Brewery and its sole shareholder, William Wyland, filed the lawsuit yesterday at the Circuit Court.
The lawsuit names USPO Redevelopment Corp., dba The USPO Galleria Boutique Shopping Center, and its officers Russell Allen and Harold Spector. The suit accueses them of breach of contract, intentional and negligent misrepresentation and other charges.
Last December developers said they had secured $54 million in financing for the project but the U.S. Postal Service said it still hadn't seen the documents it needed to set a closing date. The Galleria Shopping Center was scheduled for completion in late 1998 at the building on Richard and King streets.
USPO Redevelopment couldn't be reached for comment yesterday.
According to the lawsuit, Allen and Spector told Wyland before March 28, 1998, that they had the necessary development-rights financing to proceed with the project. Wyland spent $100,000 in developing a business relationship with them, but later determined that Allen and Spector had never obtained the rights and funding.
The Living Seas Cafe & Brewery signed a lease and was scheduled to move to the shopping center by Nov. 1, 1998, the lawsuit said. Wyland terminated the lease last December and asked that the $50,334 security deposit be refunded. Allen and Spector said they would do so "shortly" but so far have not.
The lawsuit asks that the security deposit and other damages and costs be awarded to Wyland.
The U.S. Postal Service has said holdups in permits and investors have delayed closing an agreement with USPO Redevelopment, which as early as 1996 hoped to start developing the building.
