THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Sunday, April 7, 1996 TAG: 9604070257
SECTION: LOCAL PAGE: B3 EDITION: FINAL
SOURCE: BY ALEX MARSHALL, STAFF WRITER
DATELINE: NORFOLK LENGTH: Short : 40 lines
The city, in a reply to a lawsuit against the proposed MacArthur Center mall, says nothing legally prohibits it from spending $100 million to help redevelop the city's downtown.
The city has asked the federal courts to dismiss the lawsuit by the Norfolk Federation of Business Districts and allow construction of the mall to proceed. The city wants the courts to move quickly because any delay could hurt the project's viability.
The city is putting about $100 million in public funds, most of it in loans, into the construction of the mall. The federation, in its lawsuit filed this month, has charged that this is an unfair subsidy of its competitors and that such funding is prohibited by the 14th Amendment to the U.S. Constitution.
But the city says the federation has no legal leg to stand on. Even if harmed by the mall, the city says, private businesses have no right to look to the city for compensation. Established laws authorize the use of public funds for redevelopment.
``In an effort to avoid settled law, (the Norfolk Federation of Business Districts) has attempted to dress up old, meritless claims in the garb of federal constitutional rights,'' reads the case filed by attorneys for the Norfolk Redevelopment and Housing Authority, which is leading the mall construction effort.
``But the constitution does not protect existing businesses from the consequences of a local government's economic development efforts.''
KEYWORDS: LAWSUIT SHOPPING MALLS NORFOLK FEDERATION OF
BUSINESS DISTRICTS NRHA by CNB