Court rules developer can sue Long Beach

A state appeals court has ruled developer Sinclair Haberman can move forward with a $50 million lawsuit against the City of Long Beach -- a decision both sides agree signals the quarter-century-old feud is not close to ending.

Haberman, a developer based in Long Beach and Manhattan, has been embroiled in legal fisticuffs with Long Beach since the mid-1980s, when he obtained a variance from the city to build four condominium towers on Shore Road.

The city zoning board revoked the variance for the second of the four towers in 2003, prompting Haberman to file the $50 million lawsuit -- seeking lost revenue from the stalled condo project -- the following year.

The state Appellate Division issued a ruling last week that reversed a lower court's decision and gave Haberman the right to sue the city.

While Long Beach officials said the city plans to appeal, an attorney for Haberman said the legal battle has sapped the developer's ability to finish the development, which originally was to consist of 432 units in four 10-story towers.

"The city has so tenaciously tried to obstruct this development," said Haberman's Manhattan-based attorney, Scott Mollen.

Corey Klein, Long Beach's corporation counsel, said Haberman's lawsuit is "baseless"and that the zoning board revoked the variance in 2003 because of parking concerns. The city is willing to work with Haberman on the remaining three towers, he said. "They can walk in at any time and receive a building permit to build to today's standards," Klein said.

Haberman and the city first met in court in 1987, when Long Beach changed zoning laws and lowered the maximum building height to seven stories, Mollen said. The zoning board allowed Haberman to build three 10-story towers and one seven-story tower.

But only the first 10-story building rose. Mollen said the other three buildings were not built because the city failed to provide utilities, while Klein contended Haberman failed to move ahead on the project.

Mollen said the zoning board revoked Haberman's variance in 2003 because of pressure from residents in the completed first building, who complained the second building would obstruct their views. Klein denied the charge.

Attempts to reach members of the first building's co-op board were not successful. Members of Long Beach's City Council declined to comment on the Appellate Division ruling.

The legal struggle between the city and the developer appears likely to continue, said Jack Schnirman, Long Beach's city manager.

"This has been going on for a very long time, and it's going to continue to go on for a very long time," Schnirman said.