RED files lawsuit against theater chain

[trailerkid]

KC-based RED development (developers of Barrywoods Crossing, Boardwalk, Summitwoods, and the Legends) is suing a theater chain that they claim backed out of a shopping center RED is developing in West Omaha. I've been a critic of RED since the beginning...they don't build anything with a purpose or that is well planned. And on top of that they announce the names of stores they're talking to before anything is signed.

Village Pointe developers sue theater chain

BY GRACE SHIM

WORLD-HERALD STAFF WRITER

Developers who are building an outdoor mall at 168th Street and West Dodge Road have filed a $3.5 million lawsuit against a Texas company, claiming that Rave Review Cinemas breached an agreement to build and lease a theater at the site.

Plans for the $124 million mall, Village Pointe, call for 650,000 square feet of retail space. It is scheduled to open May 2004, two months earlier than originally planned.

Mike Ebert, a partner in RED Development, said from the company's Scottsdale, Ariz., office that the lawsuit, filed recently in U.S. District Court, would not delay construction. The scheduled opening was moved up at the request of a tenant, Scheels All Sports, he said.

RED Development also built the South Pointe Pavillions mall in Lincoln and is working with the Lund Co., to renovate Regency Court.

Bob Painter, chief operating officer for Rave, said from Dallas that his company had discussions with Village Pointe developers and signed a letter of intent to negotiate further but had not reached a final decision about building a movie theater.

Painter said he was not familiar with the lawsuit.

Rave, a Dallas-based company formed in November 1999, operates eight theaters in Florida, Texas, Alabama and Indiana. It generally builds 14- to 16-screen stadium theaters in middle markets and plans to open three to four new theaters a year in the next several years, Painter said.

Rave has no plans to build a theater in Nebraska, he said.

The lawsuit alleges that around Nov. 26, developers and Rave signed a letter of intent in which the theater company agreed to lease approximately 82,000 square feet of property at $16 per square foot.

The plaintiffs state that they then began to prepare the property by buying an additional 14.7 acres of land, hiring engineers and consultants and contracting with Northern Natural Gas to move a pipeline on the acquired property, among other activities.

About March 22, the developers state in the suit, Rave said it no longer wanted to build or lease a theater on the site.

The plaintiffs' damage request of at least $3.5 million is for land purchase, land preparation costs, moving the gas pipeline, financing fees, additional loan closing costs, legal fees and "loss of goodwill" that would impact other tenants.