01-04-2025
Baltimore City sues developer for $478K in unpaid water bills at West Baltimore property
The City of Baltimore has filed a lawsuit against New York developer La Cité and Park Square Homes LLC, claiming $478,051.08 in unpaid water bills at a West Baltimore apartment complex that has been at the center of ongoing disputes.
According to the complaint filed March 31, La Cité and Park Square Homes have failed to make a water bill payment for the property at 101 North Schroeder Street since Nov. 16, 2022, despite receiving multiple invoices. Court records show that La Cité's most recent payment was made on Nov. 16, 2022, for $28,000.
Gwendolyn M. Allen, an attorney listed in court records for La Cité, could not immediately be reached for comment.
La Cité was selected by the city in 2006 to redevelop nearly 14 acres in West Baltimore. The developer has completed one 262-unit apartment complex, Center\\West.
In February, the Commonwealth of Massachusetts Superior Court issued an order stripping La Cité of its management and development of the long-stalled Poppleton project. The court approved Arctaris Impact Investors' contractual right to take over.
Arctaris Impact Investors, which targets projects in underserved communities, provided initial funding for a senior housing and retail project through a partnership with La Cité.
'Arctaris was forced to take control of the Poppleton project because of insufficient progress and transparency,' Anita Graham, an Arctaris managing director and mid-Atlantic manager, said at the time.
Attorneys with Baltimore City could not be reached for comment.
The court order stems from a lawsuit Arctaris filed in Massachusetts state court in August, seeking to recoup its more than $13 million in initial funding. The lawsuit accused the developer of breaching a contract, reached in November 2022, in which La Cité took on responsibility for securing financing and reaching other milestones.
In June 2024, city officials announced they were trying to cut ties with La Cité because the firm reportedly defaulted on its land disposition agreement after failing to prove it had financing in place for a senior apartment building long planned for the site.
The city's Department of Housing and Community Development declined to extend a missed deadline, putting the developer in default of the city agreement.
Sun reporter Lorraine Mirabella contributed to this report. Have a news tip? Contact Todd Karpovich at tkarpovich@ or on X as @ToddKarpovich.
