Developers Oliver T. Carr and Theodore R. Hagans Jr. have filed a lawsuit charging that the District's urban renewal agency acted illegally, arbitrarily and capriciously last week when it rescinded the businessmen's right to redevelop Metro Center.
The developers asked the court to order the D.C. Redevelopment Land Agency either to lower its $51.6 million asking price for the three lucrative downtown parcels or allow construction of an office building instead of the hotel that is now required on one of the parcels.
Carr had threatened court action immediately after the agency revoked his and Hagans' right to Metro Center on the grounds that the two had refused to pay the RLA's asking price. Last week Hagans had said he wanted to settle the dispute out of court, but the court papers named both developers as the plaintiffs.
City housing director Robert L. Moore, who negotiated with Carr and Hagans, had no comment on the lawsuit, according to a spokesman. Moore told his fellow RLA board members last week that the agency would win any court action that resulted from the termination.
The court papers repeat earlier charges by Carr that the negotiations broke down over whether one of the parcels should be priced as if office buildings were to be built on it or whether it should have a lower price to accommodate a hotel, which the agency had approved.