City Files Lawsuit Regarding Commercial Development

January 31, 2011 / Elizabeth Buckley, Commercial Property Analyst

The City of Hartsville filed a lawsuit against a commercial developer Balaji II LLC, after misleading Hartville’s official about its ability to finance a commercial development in the city. The commercial developer planned to construct a commercial development— Hampton Inn & Suites in downtown Hartsville, a city in Darlington County, South Carolina.

City Files Lawsuit Regarding Commercial Development

From 2008 to mid 2009, Balaji II, which is owned by D.J. Desai has repeatedly presented the city officials of Hartsville that his company is an experienced commercial and hotel property developers, who can construct the commercial development— Hampton Inn & Suites at Vista, a downtown district in Hartsville.

According to the complaint filed in Darlington County Common Pleas Court, the construction developer misinterpreted the information presented about financing the project by themselves without making a bank loan.

Hartsville is suing Desai and his company Balaji for misrepresentation and breach of contract, and is asking Darlington County Common Pleas Court to return the 3 acres of property in the Vista— where the commercial development were to be constructed, to the city ownership immediately.

The Desai and his company Balaji acquired the property in 2009 from the city.

The city alleges the developers allowed the commercial property to deteriorate, which resulted to investment loses and the reconstruction of the former railroad courtyard to create a suitable site for the commercial development.

The lawsuit seeks financial damages from the developers for an amount deemed proper by the court.

Desai did not comment abut the issue because it’s in litigation.

The defendants have one month to answer the complaint made by the city regarding the commercial development.

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