The Real Deal New York

Extell sues Port Authority to gain insight into bidding process

Barnett-led firm claims agency may have "improperly revealed" plan to develop 431 W. 33rd Street

June 08, 2016 06:00PM
By Kyna Doles

Gary Barnett and the development site at 33rd Street and Dyers Avenue on the far West Side

Gary Barnett and the development site at 33rd Street and Dyers Avenue on the far West Side

Extell Development is suing the Port Authority of New York and New Jersey in order to get access to documents it requested last year through the board’s Freedom of Information Policy.

The documents relate to Extell’s bid to acquire and develop 431 West 33rd Street, a development site the agency bought in 2008. The agency initially brought Dermot Company on board to develop the site, but began seeking other contenders after Dermot backed out.

Extell said in a lawsuit filed Wednesday in New York State Supreme Court that it suspected impropriety in the bidding process.

“Extell has reason to believe that the bidding process was not conducted properly,” the developer said in court papers, adding that the agency “may have improperly revealed Extell’s innovative scheme to develop the property to other third-party bidders despite its obligation to maintain such property information as confidential.”

Extell added that despite making the “highest valued bid for the lease,” the Port Authority chose to lease the site to another entity.

According to the suit, the Port Authority never responded to Extell’s request or delivered any of the requested material.

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