The developer of a bar in the Garment District is blaming the landlord for construction delays at the planned rooftop eatery.
Foremost Real Estate’s Dan Shavolian filed a lawsuit against 469 Holdings for $3.5 million, according to the Commercial Observer. The dispute is over the rooftop eatery Shavolian is attempting to open at Meyer Equities’ 469 Seventh Avenue.
In the suit filed Thursday in New York County Supreme Court, Shavolian alleges that building owners Martin and Eric Meyer refused to sign necessary construction permits.
Shavolian leased the rooftop of the 17-story building in 2015 in a 17-year deal that required that he redevelop the space into a restaurant.
The bar’s construction required new elevators to be installed, allowing for the replacement of the roof’s mechanicals and remodeling of the property’s lobby. However, the Meyers refused to sign off on demolition permits for the elevator.
“As I repeatedly explained to the Meyers, their failure to approve the demolition permit halted all work on the project,” Shavolian said in his affidavit.
Then, in September, the Meyers attempted to evict Shavolian due to his failure to build the bar.
Shavolian claims he has spent $1.5 million on early construction costs. The lawsuit is seeking the Meyers cover his expenses and are prevented from evicting him.
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“The Meyers have acted in bad faith and have deliberately impeded the project,” the complaint said. “Without an injunction and maintenance of the status quo, [the] plaintiff will suffer irreparable harm, including the loss of a valuable leasehold interest.”
Shavolian’s past hospitality projects include 241 Fifth Avenue Hotel — a 100-room hotel-condo project that was struck with foreclosure in 2009. Developer 241 Fifth Avenue Hotel was led by Shavolian and investor Jack Hazan.
Elsewhere in the city, Shavolian received $53.3 million from UMB Bank in July to buy and develop 1374 Blondell Avenue in the Bronx’s Westchester Square neighborhood.
— Sasha Jones