Boy, this is a really long running story line…the city’s attempt to redo K Street.
City suing in land swap
Officials try to save K Street development plans threatened by a tardy deal.
By Terri Hardy - Bee Staff Writer
Published 12:00 am PST Wednesday, February 14, 2007
Even as city officials Tuesday welcomed news that a last-minute land agreement had saved downtown's high-profile Aura Condominiums project from collapsing, they went to court in a scramble to salvage a crucial K Street redevelopment plan.
With the future of blighted K Street and more than $24 million in taxpayers' money on the line, the city Tuesday sued a local development team headed by Moe Mohanna and John Lambath to force them to go through with an agreed-upon land swap.
The land exchange will allow a development team fronted by Joe Zeiden, owner of the Z Gallerie furniture retail chain, to revamp the historic buildings in the 700 block of K Street and install them with well-known retailers. And, it should pave the way for the Mohanna and Lambath group to transform the street's 800 block with condos and retail.
City officials said they fear more delay could mean losing Zeiden, who had hoped to start construction last fall and complete the project by next winter.
"This delay pretty much derails those plans," said John Dangberg, an assistant city manager. "We're asking them to perform under the contract, like they've agreed to."
Mayor Heather Fargo said it was necessary for the city to file the breach-of-contract action and deal aggressively with the Mohanna/Lambath team. "It was the only way to keep (Zeiden) in the project," she said.
Mohanna and Lambath did not return calls for comment.
