On February 11, 2010, the Ashby developers sued the City of Houston on the grounds that the City wrongfully denied the developers’ April 7, 2009 permit submittal for the Ashby High Rise. The press release that accompanied the filing of the lawsuit says that the developers believe that they have incurred more than $ 40 million in damages as a result of the City’s actions. A copy of the developers’ lawsuit is posted here.
The City had expected to be sued, so this lawsuit comes as no surprise to the City, nor to us. The City has indicated that it is confident in its legal position, and we agree that the developers are unlikely to prevail. Consider that in August 2009, the developers asked for and received approval to build a 23 story building with 210 apartments and 10,000 square feet of commercial space, whereas they initially asked to build a 23 story building with 226 apartments and 25,000 square feet of commercial space. Putting aside the issue that they received approval for what they requested, it is hard to see how the difference of 16 apartments and 15,000 square feet of commercial space is worth $40 million.
We will monitor this litigation and keep you informed. We will also be evaluating our options with respect to participating in the suit.
Thank you for your continued support.