NORTHAMPTON — A Florence developer has filed a civil lawsuit in Hampshire Superior Court asking a judge to order the city of Northampton to return a $27,000 deposit.
McCutcheon Development LLC filed the suit on Jan. 3 asking for a return of a real estate deposit which the company put down for three lots on Burts Pit Road with the intention of building on the lots. After signing the purchase and sale agreement, the city then obtained a zoning special permit, a stormwater management permit and a site-plan approval decision per the terms of that agreement.
After McCutcheon signed the agreement, the lawsuit alleges the city added additional conditions which were neither negotiated nor disclosed to McCutcheon beforehand. The conditions made it “impossible or illusory” for the company to move forward with its plans, according to the lawsuit. The city, which denies the allegations, has refused to return the $27,000 deposit.
The additional conditions include phasing of development, which means that the lots McCutcheon paid a deposit on cannot be built on until construction is completed on other lots. Rain gardens must be built, according to the complaint.
“The City has breached the Agreement by contracting to sell McCutcheon lots that cannot be built on and has not returned the deposit … or refunded the deposit because of conditions other than those represented in the agreement,” the complaint states.
In its response, the city argues that when the two parties entered into a purchase and sale agreement there was explicit language which stated that the city would not impose “any covenants or restrictions as part of the sale except any conditions related site plan, special permit, and stormwater permit approvals.”
“The City did not impose any covenants or restrictions as part of the sale other than the conditions imposed in the site plan, special permit, and stormwater permits,” the city answered.
Both parties have requested a jury trial.
Emily Cutts can be reached at ecutts@gazettenet.com.
Editor’s Note: This story was changed on Feb. 5, 2018, to clarify the terms of the purchase and sale agreement.
