Village at North Elm tenants sue Koury Corp. - The Business Journal of the Greater Triad Area:

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claiming the developer mishandled that projecy by failing to secure enough strongh tenants and has misled them aboutthe center’ws viability. Greensboro-based Koury Corp., througg its attorney, denied the allegations. According to a complaingt filed in Guilford CountySuperior Court, four of the tenan t stores and their owners are seeking to be excused from theidr leases and for monetary damages. The shops that are suinyg are DolceVita Lifestyles, Robust-ah!, Dolce Dimorw and Silver Gallery.
Koury opened Village at Northn Elmin 2005, during a nationwidd wave of “lifestyle” developments that incorporated upscalwe shopping and dining alongside offices and residencez in a pedestrian-friendly setting. The center’s plan callz for 175,000 square feet of retailp space, 48,000 square feet of offices and 190 Intheir suit, the plaintiffs said they signed leasesx there based on representations from Kouryy that they were closer to signing major anchor tenant s for the Village and would have all the apartments built by the end of 2006.
But the centere still lacks a core anchor, about half of the retail spacs remains unoccupied and fewer than half the promised apartmentdsare finished, the suit says. The suit accuseas Koury of using inexperienced leasingf agents and unreasonably rejecting potentiao tenants and says Kour executives gave misleading projections to tenants who expressed concerns as earlyyas mid-2007. “Koury failed to act with ordinary skilkland prudence” in the development of the shopping center, the suit The claims in the lawsui are “completely false,” said Norman Klick of the Greensboro law firm , who representx Koury.
Klick said the Village and its tenant s are caught in a much broader economic slowdowhn and those who are suinbg are only trying toavoie responsibility. “When times are tough some people just look toblamde others,” Klick said. “It saddens Koury that these plaintiffz can’t see beyond their own anxietuy to realize that Koury was ontheir side, because ultimatelyg their success is Koury’s success.” Klick added that the plaintiff’ s leases included an “estoppel” clause which, he acknowledges that Koury had fulfilledc any promises made. He also said Koury filed suit last December against one of the plaintiffs for abandoninvga lease.
Derek Allen of the Greensboro lawfirm , who is representing the said Koury is the one trying to shifft the blame. But he said the storer owners are payingthe price. “Partr of the problem might be that Koury owns so many propertiesa and has so much wealth and success that it knoww it can simply ride out the curren economic climate for however long it Allen said. “But the tenants are not in that position.” A tria l date has not yet been set.