JMI Realty Inc. and Manchester Resorts have battled in recent months over which developer has the exclusive right to negotiate a deal with the San Diego Unified Port District to build the hotel on the Campbell Shipyards property. JMI filed suit against the Port District in San Diego Superior Court Tuesday, claiming that it did a turnaround after granting the rights to JMI in 1999 and then reassigning the rights to Manchester.
In the complaint, the developer asks the court to rule on which company has the negotiating rights and asks for damages as a result of the district's violation of the agreement. JMI attorneys say the port has been unwilling to settle the issue.
Over the last three years, a number of developers have sought the right to build the $250-million hotel project. City officials say a hotel is vital to serving the expanded convention center, which needs larger blocks of rooms to attract larger groups.
The Campbell Shipyards hotel was once seen as a financial angel for the proposed Downtown ballpark project. Under the previous financing agreement, room-tax revenues were to pay for the city's share of the enormous debt created by the ballpark project.
However, Mayor Dick Murphy, elected last fall, pulled the plug on that idea earlier this year. The project will now move forward with a financing package that doesn't include hotel taxes.
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