Housing nonprofit files $15 million lawsuit against real estate group for stalling Scott’s Addition project

Housing nonprofit files $15 million lawsuit against real estate group for stalling Scott’s Addition project

The Better Housing Coalition has filed a lawsuit accusing Richmond-based Dominion Diversified Real Estate Group of stalling progress on a mixed use project planned for the former Quality Inn & Suites on W. Broad Street.

Rendering: Better Housing Coalition

A plan to convert the former Quality Inn & Suites on W. Broad Street in Scott’s Addition has stalled following several lawsuits. The project, which would convert the hotel into a mixed use project and include housing targeted to those with various income levels, received $2.5 million in state grants back in June.

The latest lawsuit, put forth by the Better Housing Coalition–who is developing the property–targets a local real estate company that plans to re-file a formerly dropped lawsuit against the project, causing significant delays in construction.

From Richmond BizSense:

Claiming one of its big projects is stuck in limbo because of a dispute with a local developer, a Richmond housing nonprofit has sued to regain control of its plan to convert a shuttered Scott’s Addition hotel into income-based apartments.

Better Housing Coalition filed a $15 million lawsuit Friday against Henrico-based Dominion Diversified Real Estate Group, alleging the firm is holding hostage the nonprofit’s plan to redevelop the former Quality Inn & Suites building at 3200 W. Broad St.

BHC claims that Dominion Diversified’s threats to refile a separate and recently withdrawn lawsuit, which alleged the nonprofit stole the idea for the hotel conversion from Dominion Diversified, continues to loom over the project and prevent it from proceeding.

Read the full story here.

Comments

comments

About Trevor Dickerson 1206 Articles

Trevor Dickerson is the co-founder and editor of RVAhub.com, lover of all things Richmond, and a master of karate and friendship for everyone.