Two Washington businessmen posted a $22.6 million bond yesterday to continue the preliminary injunction they won two days ago to block the city's attempt to remove them as developers of the Metro Center site in downtown.
Attorneys for the city's urban renewal agency, who had requested the bond and agreed to a three-hour extension of yesterday's noon deadline for the filing, said they would decide today whether to appeal issuance of the preliminary injunction Monday by D.C. Superior Court Judge Sylvia Bacon in favor of developers Oliver T. Carr and Theodore R. Hagans.
If the bond had not been filed, the injunction would have expired and the D.C. Redevelopment Land Agency could have selected another developer for the choice Metro Center site, located in the heart of downtown atop one of the city's busiest subway stations.
The developers refused to disclose how much they were paying for the bond from the Federal Insurance Co. The bond will insure the city against any loss of revenue should the city eventually prevail in a trial on the merits of the lawsuit that Carr and Hagans bought after their development rights to Metro Center were rescinded by RLA in March.
Earlier this summer, the board of directors of the May Co., which owns Hecht's, one of Washington's major department stores, had directed Hecht's officials to reach a firm agreement for a new store at Metro Center by Sept. 1 or close their unit at 7th and F Streets NW.
Attorney R. Robert Linowes, who represents Hecht's, said store officials must now determine what course to follow since there is no party to reach a firm commitment with. Hecht's officials have complained that they are losing money at their long-time F Street location.