LM Legacy Group, an affiliate of Meilman Family Real Estate, has been sued by Jason Taubman Kalisman’s Morgans Hotel Group for $210 million on charges of breach of contract over a project in Manhattan’s Meatpacking district, The Real Deal has reported.
The news comes just a few days after Meilman revealed the renderings for the new project Located at 414 West 15th Street between Ninth and Tenth Avenues across the street from Chelsea Market in Manhattan.
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It is set to be a hotel which will be managed by Highgate Holdings, an independent Hospitality Management firm serving some of the country’s largest and most sophisticated institutional Hotel Owners. But Morgans asserts that it had contracted with Meilman to operate it.
Morgans filed its lawsuit in Manhattan Supreme Court in which it claims that Meilman wrongfully terminated a fifteen year contract which it had to manage the hotel. The firm claims that it contracted in 2008 to manage the new hotel for 15 years.
The company planned to make the hotel the flagship for its Sanderson brand name in North America. It further alleges that the firm agreed with Meilman not to open any other hotels in that part of Manhattan in exchange for the right of first refusal to manage any hotel built at the meatpacking district site.
The first renderings for New York’s Meilman Family Real Estate and Keith Gelb and Aric Shalev’s Rockpoint Group’s new hotel currently under development in Manhattan’s Meatpacking district were revealed by New York Yimby last week.
The hotel will have 25 stories and rise to 285 feet in height. It will have a grey brick façade with casement windows. There will be 158 rooms and a rooftop event space.
CetraRuddy designed the building which is due to be completed in the summer of 2016. The new look of the hotel is vastly different from the one previously revealed when the project was being designed by Stonehill & Taylor, before CetraRuddy came on board.
Meilman Family Real Estate has been a property owner in the Meatpacking District for over 75 years. Louis Meilman Inc. closed its Meatpacking business in 1990 located at 414–418 West 14th Street in the Meat Packing District. Anticipating a cultural shift in the neighborhood, Richard Meilman, Louis’ grandsons spearheaded the locations real estate development along with his father Jack Meilman and uncle, Myron Meilman.