Sep. 28--DOC: 9-28-09 Public Hearing Agy Plan rev.

DOC: 9-28-09 Agenda.doc

Nearly a year after the Chattanooga Housing Authority was cited in a lawsuit for defaulting on the Mayfair on Market project, CHA officials say they expect to reach an agreement today with the development partners.

"They want it to go away, and we want it to go away," said Eddie Holmes, CHA's board chairman. "We're trying to put that to rest."

According to the agenda for a CHA meeting today, the board will consider approval of a settlement with the 700 Block Development Project, the group that was going build the Mayfair on Market project.

Developer Trey Stanley said Friday he would wait to see what action the board officially takes today before commenting.

On Aug. 23, 2007, the housing authority said it would give $3.3 million toward a $16 million project of retail shops and condominiums located on the 700 block of Market Street. Developers said it would include some condos for low- to moderate-income residents.

But after CHA gave $2.1 million, agency officials announced a $4.5 million budget shortfall and said CHA had used the remainder of the money allocated for the Market Street project to pay for their own general operations.

RiverCity Co., a nonprofit downtown redevelopment group, filed a lawsuit against the 700 Block Development Project and another entity, Rose & Crown LLC, in November 2008, trying to reclaim property.

In a response to the lawsuit, the developers said they couldn't build the project because CHA defaulted on its $3.3 million.

Staff writer Mike Pare contributed to this article.

If you go

--What: Chattanooga Housing Authority board meeting

--When: 12:30 p.m. today

--Where: CHA board meeting room, 801 Holtzclaw Ave.

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