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eveloper Don Peebles and partner Victor MacFarlane's Angels Landing Partners has filed a lawsuit against the City of Los Angeles, alleging that the city unlawfully terminated their contract to build the $1.6 billion Angels Landing project in Downtown LA. The project would have been one of the largest African-American-led developments in the city's history.
Peebles' company and MacFarlane Development Company are seeking $20 million they invested in the project after the city "abruptly and inexplicably" terminated its agreement with Angels Landing without proper justification, according to the complaint filed in L.A. Superior Court. The city had selected Angels Landing to develop a vacant site at 361 South Hill Street following a request for qualifications in April 2017.
The proposed project, which would have marked Peebles Corporation's entry into the LA market, included two mixed-use buildings with hotel rooms, rental and condominium units, retail, restaurants, an elementary charter school, and open space. The city and developers executed an exclusive negotiating agreement in March 2018, stipulating that the developers would be reimbursed if the city terminated the agreement without their default.
The lawsuit claims that the city's termination was unjustified, as it cited a breach of the development agreement that did not exist. Peebles stated that they tried to argue that the city had no right to terminate the agreement, but were unsuccessful. The case is ongoing, with MacFarlane and the City Attorney declining to comment.
