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Downtown Hotels Sue LMDC over Deutsche Bank Demolition

By Ben Fractenberg | January 3, 2012 9:46pm

DOWNTOWN — The owner of two hotels overlooking the World Trade Center site is suing the Lower Manhattan Development Corporation alleging at least $1 million in lost revenue due to the Deutsche Bank building demolition, The Real Deal reported Tuesday.

Cedar & Washington Associates, which owns Club Quarters at 140 Washington St. and World Center Hotel at 144 Washington St., reportedly said demolition work on the nearby Deutsche Bank building and a crane that was placed on Washington Street for two weeks in September 2010 generated noise and “stigmatized the hotels as unsafe.”

“The Lower Manhattan Development Corp. was, at all relevant times, aware of the impact the crane and deconstruction activities at the Deutsche Bank site had on the hotels and failed to take any measures to mitigate this impact,” the suit reportedly says.

The World Center Hotel, which opened in June 2010, first complained about the crane when it was originally placed on the street.

The owners said the crane blocked traffic on Washington Street, making it difficult for tourists to find the hotel.

Cedar & Washington also reportedly sued organizations associated with the World Trade Center site in 2008, trying to recover money form alleged environmental cleanup costs related to Sept. 11. They lost the suit in September 2010 but filed an appeal, which is still active.