New London — A company that in 2013 appeared poised to break ground on a 104-unit residential development at Fort Trumbull is suing the city and its development arm, the Renaissance City Development Association, over a breach of contract.

Westport-based River Bank Construction LLC, run by father and son team of Irwin and Robert Stillman, is attempting to recoup more than $2 million it claims was spent in development of plans, local permits and approvals for their Village on the Green project.

The suit additionally asks for a court to consider punitive damages and legal fees, among other costs.

Attorneys for both the city and RCDA said the suit was without merit but declined to discuss any details of the complaint while litigation was pending.

River Bank had a signed a development agreement with RCDA when, in 2013, the RCDA refused to turn over the four parcels of land designated for the development, about 6.5 acres, because of a dispute about how the $20 million project would be financed.

The Stillmans claim they were prepared to self-finance the project but the RCDA had demanded “cash performance bonds, letters of credit or some forms of personal guaranty.”

Riverbank claims in the suit that these were “added terms and conditions not contained in the Development Agreement.”

Mediation at the time ended on a sour note.

The RCDA maintained the Stillmans were in default of the contract. Riverbank contends RCDA breached the contract.

Irwin Stillman, in a phone interview this week, called it a “terrible injustice.”

“We were hurt very very badly, financially and reputation-wise, by the RCDA and the city,” Stillman said. “We put a huge amount of time in our lives devoted to making things work. This thing could have already been built and occupied. It was a terrible mishandling of business.”

River Bank claims it spent $84,817 on local building permits for the first phase of the project, $1.8 million in expenses associated with approvals and permits necessary in the development agreement and deposited $150,000 to the New London Development Corporation, the predecessor of the RCDA, as evidence of its commitment.

River Bank Construction has a pending lawsuit against the city in New London Superior Court to recover $83,000 paid in local permitting fees.

In the six weeks prior to the RCDA cutting ties with River Bank, the suit claims the Stillmans had hired a construction manager, entered into a multimillion contract for site work, foundation and pile driving, and ordered a construction trailer, portable toilets and protective fencing.

As part of the suit, River Bank has filed a notice of Lis Pendens, or pending litigation, on the four Fort Trumbull parcels designated as 2A, 2B, 2C and 3B — land associated with the former Naval Undersea Warfare Center.

Anyone interested in the land would be made aware of the pending suit.

Legal woes through the years, not the least of which was a drawn-out legal fight over the use of eminent domain, have helped to stymie development in the Fort Trumbull area, where the state invested approximately $80 million on infrastructure improvements.

The suit comes as the RCDA and the city, under Mayor Michael Passero, have a closer relationship than in the past.

The city earlier this year appropriated money to the RCDA for operating expenses, which led to the hiring of RCDA Executive Director Peter Davis.

The City Council last week agreed to allow the RCDA to work on requests for proposals for three city-owned properties outside the Fort Trumbull area.

Last month, State Rep. Ernest Hewett, D-New London, introduced legislation to create a special taxing district in the Fort Trumbull area in an effort to spark development there.

RCDA Attorney Karl-Erik Sternlof said in a statement the RCDA was notified of the suit last week.

“If and when the writ is returned to Superior Court, RCDA will vigorously defend itself against all claims asserted against it in such action with the full expectation that RCDA will prevail on the merits of its position,” Sternlof wrote.

The suit is dated March 24 with a return date of May 10 at New Haven Superior Court.

City Attorney Jeffrey Londregan said he believed the city also would prevail in court.

“In my first review of the complaint the claims, as they pertain to the city, appear meritless,” Londregan said.

g.smith@theday.com