ST. LOUIS – A circuit court has denied a motion to dismiss filed by the Bank of Washington regarding land for a new National Geospatial Intelligence Agency facility.
The decision from Judge David Dowd was released Sept. 10 by the St. Louis Circuit Court.
In their filing, defendants Bank of Washington and Northside Regeneration argued that the doctrine of abatement applies because this case has the same parties and same claims as a different action filed by the Bank of Washington in Franklin County. They claim that the plaintiff, LCRA Holdings Corp., should file a claim to the quiet title as a compulsory counterclaim in that case.
However, the plaintiff disagreed and has said that this case does not involve the same parties, same claims or the same purpose as the other action. The court agreed.
“Public policy and interest should permit this action to proceed,” Dowd wrote. “Plaintiff’s action to quiet title relates to property to be transferred to the United States government in November 2018 that will be used to construct the regional headquarters for the NGA.
“The NGA project is expected to cost approximately $1.75 billion and will retain and attract thousands of high-wage jobs and create many growth and redevelopment opportunities for the city of St. Louis,” the ruling states.
He also wrote that the court “believes that the parties, claims and object and purpose of the Franklin County action are different than those asserted here.”
The filings began on June 12 after the city of St. Louis sent a notice to the defendants saying they were in default under a redevelopment agreement.
“The city advised that is those defaults were not cured, which they apparently have not been, the redevelopment agreement would be terminated by the city,” according to the court decision.
The defendants responded a few weeks after the notice by filing an action in Franklin County “alleging that plaintiff and the Land Clearance for Redevelopment Authority of the city of St. Louis fraudulently induced the Bank to enter into two agreements pursuant to which the bank released its liens on property owned by NSR within the 97 acres being readied for transfer to the National Geospatial Intelligence Agency (NGA) for the construction of its $1.75 billion facility” the ruling states.
“The fundamental claim in the Franklin County action is that the city’s default letter breached the terms of the agreements. The Franklin County action seeks damages and a partial rescission of the agreements,” the ruling states.