Suit targets GDB over land sale to Plaza Las Américas without auction

On November 20, 2014, Waldo D. Covas Quevedo reported for CPI that New Century Development —developer of The Mall of San Juan— and its vice president Frank Trogolo sued for $5 million the Government Development Bank (GDB) and Fringe Area VI (Empresas Fonalledas / Plaza Las Américas), seeking to annul the sale of the former National Guard Armory grounds in Hato Rey.

The December 17, 2012 purchase, in the final days of the Fortuño administration, transferred 11.2435 cuerdas to Fringe Area IV for $24 million. When the Land Administration passed the parcel to the GDB, it valued it at $52 million. Plaintiffs allege a sale without public auction, violations of the Constitution, the GDB Organic Act and its regulations (Board, Disposition Committee, public notice if the asset exceeds $100,000), and a clause allowing cancellation if the Planning Board denied rezoning to commercial. They also cite more than $400,000 allocated for the Guard to vacate.

After three appraisals ($52M / $33M / $11M), the suit claims the GDB effectively “donated” about $28 million to Fringe Area IV by selling at $24 million. Defendants: GDB, Melba Acosta Febo, Fringe Area IV, Javier Ferrer Canals and insurers. Fringe Area VI, via Lorraine Vissepó, called the suit a “frivolous” competitor claim; it said they paid the prevailing commercial appraisal and project >$75 million of investment and >1,200 jobs.

A civil suit and illegality allegations are not a judgment or adjudicated theft.

Source: Centro de Periodismo Investigativo. https://periodismoinvestigativo.com/2014/11/demandan-al-gobierno-por-venta-irregular-de-terrenos-aledanos-a-plaza-las-americas/