Supreme Court rejects Edgewater lawsuit (UPDATE)

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By Adam Wise

The Wisconsin Supreme Court has rejected a lawsuit filed by two Madison residents contesting the merits of a controversial downtown hotel expansion.

The court Thursday officially denied a petition request by Fred Mohs and Gene Devitt, effectively ending their fight against the city of Madison to block The Edgewater Hotel redevelopment.

“This is all a very sad little story,” Mohs said, “but now we’ll see what happens next.

“Nice try, but no cigar.”

In the lawsuit — which also named Landmark X LLC, the Edgewater development team led by Brookfield-based Hammes Co. President Bob Dunn — Mohs and Devitt argued Madison’s Common Council defied the city’s landmarks ordinance by approving the $98 million hotel project in spring 2010. Mohs and Devitt also lost at the circuit and appellate courts.

Despite the legal clearance, the project remains an unrealized dream for Dunn, who has been unable to secure enough money to start the redevelopment since the city withdrew $12.7 million of the previously approved $16 million in subsidies for the project.

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EDGEWATER PROJECT

Dunn did not immediately return messages seeking comment.

But Mohs got what he wanted out of the lawsuit because the case stalled the project long enough for new Mayor Paul Soglin to oppose the city’s $16 million contribution, Alderman Mark Clear said. Soglin, last fall, successfully cut the tax-incremental finance contribution to $3.3 million, an amount Dunn has said would kill the project.

“I think that everybody, including Fred, knew that he didn’t have a case and that this was a delay tactic,” Clear said. “It’s very disappointing that one person with money can trump democracy.”

But Mohs said his arguments always focused on the fact the council only could overturn a Landmarks Commission recommendation by claiming the property owner had a serious hardship. Dunn, Mohs said, is not owner of the hotel — the Faulkner family remains the owner — so the council acted against the city’s ordinance.

“The fact is, very early on I was identified as the villain or the bad guy,” Mohs said. “I think I know more about my motivation than they do. Obviously some things happened during the delay that clarified the history of this subject, but that wasn’t intended.”

Soglin said Friday he hadn’t heard of the Supreme Court’s decision.

“It does not change anything for the city of Madison,” he said. “Our decisions have been made. Anytime when litigation ends, generally that’s a good thing.”

Soglin said he hadn’t spoken to Dunn this year, so he doesn’t know the status of the project.

But Clear still holds out hope for The Edgewater.

“The good news is that if Dunn can get financing, he can start work tomorrow,” Clear said. “Obviously, the financing is a bigger challenge because there’s less funding available in the TIF, but never say never with Bob.”