JERSEY CITY-New Gold Equities and its parent company, the New York-based BLDG Management Co., have filed suit in the US District Court for the District of New Jersey against the city. The suit alleges that the city has "taken action under color of official government actions that were improper, wrongful, illegal and otherwise for depriving" New Gold of its rights in its properties at 110 and 111 First St. here. The developer is seeking damages of more than $100 million.

110 First St., deemed unsafe, was torn down a year ago to make way for a proposed luxury residential building. 111 First St., a former tobacco factory, was originally proposed for redevelopment as a below-market live/work building for artists, but has similarly been deemed unsafe and proposed for demolition and redevelopment. Its demolition has been blocked by nearly two years of litigation between the city and the developer relating to its future, however. The suit cites former Mayor Harvey Smith; Robert Cotter, acting director of the Department of Housing, Economic Development and Commerce; and various other city officials and bodies.

"Our intent has always been to launch a redevelopment of the neighborhood," Michelle Berliner, vice president of BLDG Management, says in a statement on the suit. "In contrast, the city has refused to allow redevelopment of the area, instead focusing on methods to take the property from New Gold and give it away to a select group of artists." New Gold officials say they have spent more than $30 million to date on the site.

Total cost of the redevelopment has been pegged in the $100-million range. City officials declined to comment on the lawsuit.