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BHC claims that Dominion Diversified’s threats to refile a separate and recently withdrawn lawsuit, which alleged the nonprofit stole the idea for the hotel conversion from Dominion Diversified, continues to loom over the project and prevent it from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