Creditor wants more time to develop prime Detroit land
DETROIT (AP) — A creditor that acquired key pieces of Detroit’s riverfront during the city’s bankruptcy is seeking more time to develop the property.
Gotham Motown Recovery says the city so far isn’t granting a two-year extension for a plan for land along the Detroit River, including Joe Louis Arena. Gotham filed a lawsuit Monday in U.S. Bankruptcy Court.
Gotham is managed by Fidelity Guaranty Insurance Co., a bond insurer also known as FGIC. FGIC agreed to take the land in 2014 to settle its $1 billion claim against Detroit during the city’s bankruptcy. The deal includes demolishing the arena.
City attorney Lawrence Garcia says the lawsuit has “no merit.”
Gotham says Detroit’s prospects have improved dramatically since the bankruptcy. The lawsuit says that success has “vastly increased” the complexity of the project.