REDWOOD CITY, CA—A  lawsuit against the owner of Pete’s Harbor on behalf of boat-dwelling tenants being evicted to make room for a new residential development has been dropped.

Alison Madden, a Pete’s Harbor boat owner and the lawyer representing the “Save Pete’s Harbor” group, told the Palo Alto Daily News that she filed a motion to dismiss the suit.

Because the state leased it the outer marina for commercial use, Pete’s Harbor has no right to transfer the lease to developer Paul Powers for a private development, the suit contends. In April the lease transfer question is expected to go to the State Lands Commission, which has authority over the outer harbor.

Madden also has asked for the Redwood City City Council to overturn the city Planning Commission’s approval of the project in October. The council is to consider her appeal after the state commission resolves the outer harbor question.

Madden said she dropped the lawsuit because she is confident the state won’t allow the outer harbor to be developed into a private marina.

“I felt like I wanted to focus on the State Lands Commission and the city appeal,” Madden said.

A spokesman for Pete’s Harbor owner Paula Uccelli offered a different explanation for Madden’s action.

“We didn’t think the lawsuit had any merit to begin with,” Adam Alberti said. “I think the fact that the suit has been dropped is a reflection of that.”

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