Developer and city hall collide over future

Angered over New Haven's deal to move the Yale Co-op into the corner lot of the revamped Chapel Square Mall, Omni Hotel developer David Cordish said that he is contemplating legal action against the city.

"The deal was not done with our authorization. On one hand, I'm very high on the Co-op as to what they can do for downtown, but since we had nothing to do with the deal, we were proceeding to lease the mall to other tenants. We didn't know about it and it wasn't in our plans," Cordish said.

Cordish and the Omni plan to purchase the mall from the New Haven Chamber of Commerce once construction of the new Omni hotel is 50 percent complete. According to Cordish, he was close to a deal with a large nationwide bookstore for the same lot.

City officials tell a different story. According to Chamber of Commerce President Matthew Nemerson, Cordish knew of the city's negotiations with the Co-op for months.

"It's curious--our lawyers have gone back and forth with many conversations. We had a conversation Monday of last week [about the Co-op]. [Cordish] has been consulted all the way," Nemerson said.

Whether Cordish has any legal grounds for action against the city is unclear. The city had an agreement with Cordish to preserve the value of the mall until Cordish had the option to purchase the property. Cordish expressed concern over the city's financing of the Co-op's $1.5 million relocation costs.

While the Co-op has a valid contract for its new site, Cordish said that the city is not protected from legal action. "They have legal obligations with us ," he said.

Nemerson dismissed Cordish's talk of legal action. "I guess it's a developer trying to do some negotiating--there are no legal grounds to sue anybody. Obviously, if David has another tenant we would have known about it long ago," he said.

The dispute over the Co-op is typical of relations between the city and Cordish. A war of words and more importantly, a war of visions have created frustration and coordination problems between the two major players in New Haven's future. For example, the two remain at odds over the possible relocation of the bus stops that take up valuable parking space in front of the mall. While the city agreed to move the stops as part of the city's development agreement with Omni, protest to the policy has caused Mayor John DeStephano to reexamine the move.

"We feel that we made a tactical mistake by tying transportation issues to the development of the hotel. The mayor's position is that he has received enough comments and concerns that he has formed a panel to make recommendation," Catherine Sullivan-DeCarlo, DeStefano's press secretary, said. Cordish and New Haven have two different adgendas for reaching a common goal: revitalization.

Cordish wants to make downtown New Haven a vibrant retail and entertainment center. "In every city I've worked, you start from the core and work out. If I were the city [government], I'd focus first on [downtown] and let the success radiate out block by block. I can cite success after success doing it the way I'm suggesting...how many little boutiques can you have?" he said.

Nemerson doubts the economic feasibility of Cordish's design for New Haven. He said that a mall at Long Wharf--the city's project to harvest suburban dollars--is a reaction to a lack of state funding that would make downtown a major retail center. "We've got a much better handle on political realities. Nobody disputes David's dream, [but] he's coming to the table with ideas that take tens of millions of dollars to do. The world is full of Monday morning quarterbacks," he said.

Cordish expressed concern over the effect Long Wharf will have on valuable downtown retailers like the Gap, Laura Ashley, and Ann Taylor. "What happens when the lease is up and they have a chance to go into Long Wharf Mall? A regional mall is not going to affect these retail stores? Give me a break." He questioned the city's approach to redevelopment. "[The mayor] is jumping over to a regional mall and hoping that it will fill in--I've never seen that anywhere else," Cordish said.

As plans for a more upscale Chapel Square and a mammoth mall by the waterfront both move forward, it is clear that Cordish and the city will need to acknowledge their different philosophies. Both sides agree on the arduous road ahead. "I must say, [the Omni/Chapel Square project] is certainly the most difficult I've ever had politically," Cordish said.

However, Nemerson dismisses Cordish's grumbling as more maneuvering. "If we went left, he would have gone right--he's looking for leverage and opportunities. He plays hardball," Nemerson said.

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