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    Thursday, April 25, 2024

    Foxwoods mall owner suing development partner, design firm

    Tanger Factory Outlet Centers has lodged separate lawsuits against its partner in developing the $125 million Tanger Outlets at Foxwoods and architects it hired to provide design and administrative services for the project.

    In a suit filed in U.S. District Court in New Haven, Tanger, based in Greensboro, N.C., seeks to recover an “excess development fee” of about $568,000 that it says it paid to Gordon Group Holdings, its Greenwich-based development partner.

    The Foxwoods outlets, an enclosed, 80-store mall linking Foxwoods Resort Casino’s Grand Pequot and Foxwoods towers, opened in May.

    Tanger, which owns the mall, says in the suit that it agreed in 2012 to pay Gordon a development fee of 2.5 percent of the project’s “hard costs.” Nearly two years later, in March 2014, the parties reached an amended agreement that capped Gordon’s fee at $1 million, according to the suit.

    Tanger claims it has paid Gordon $1,568,053 in fees and has been unable to recover the alleged overpayment.

    Senior District Judge Charles Haight Jr. ruled last week that the citizenship of the parties must be confirmed before the suit can proceed. He noted that district courts have jurisdiction in civil actions involving claims in excess of $75,000 provided the dispute is between citizens of different states.

    “Plaintiffs have failed to allege sufficient facts to establish that such diversity of citizenship exists,” Haight wrote.

    In the other suit, filed in state Superior Court in New London, Tanger claims that Design Development Architects, of White Plains, N.Y., was negligent in breaching the terms of a $2.3 million contract calling for “design and certain construction administration services.”

    Tanger alleges that Design Development’s work fell short in a number of instances, including “designing deficient structural support systems for the tenant storefronts.” Tanger is seeking in excess of $15,000.

    Design Development has yet to respond to the suit.

    b.hallenbeck@theday.com

    Twitter: @bjhallenbeck

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