Pasadena : City Slapped With Lawsuit
Real Property Services Corp. has filed a $10-million lawsuit against the city, claiming that the city’s decision to cancel plans to build a movie theater in Old Town is a breach of contract.
The Board of Directors voted March 13 to abandon plans to build a theater under the city-owned Schoolhouse Block parking facility, now under construction at the corner of Raymond Avenue and Green Street, because of engineering and construction problems, which would have caused a cost overrun of $500,000 to $700,000. Construction might have resulted in serious structural damage to the renovated Braley Building next door, city officials said.
Under the proposal, the city was to have leased the theater to BWC/Cinema, which would have subleased it to Real Property Services Corp., which would have operated the multiscreen theater, said David Allen, attorney for Real Property.
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