By Gordon Anderson | gordon@rantnc.com

A motion by Sanford city government to dismiss a lawsuit contending its purchase of the historic but dilapidated downtown Singer Building for the purpose of creating a “Sanford Central Green” breached a contract with a Durham developer who was planning to buy the property himself was dismissed in Lee County Superior Court last week.

The dismissal means the case, brought by Durham-based developer Nick Jordan, will move forward. A trial date has not been set.

“The City of Sanford filed a motion to convince the court that Mr. Jordan’s lawsuit lacked merit and that no contract existed between the parties,” said Will Gordon, one of the attorneys representing Jordan. “The court disagreed and denied the City’s motion in whole. We are pleased with this result and look forward to continuing to protect Mr. Jordan’s legal rights.”

Jordan, the founder of software development company Smashing Boxes, had secured an option to purchase the property, which sits behind the old City Hall on Charlotte Avenue, back in May of 2021. The agreement stated that Sanford government would relinquish its own option to purchase if Jordan completed the purchase and entered a development agreement. Jordan has renderings of his plans for the property – a mixed use hub including space for offices, retail and restaurants in which he expects to invest around $25 million – but contends the city has “intentionally delay(ed)” his “efforts to finalize and execute (a) developer agreement.”

The issue spilled into the public eye in late November, when Jordan said the city let him know it had purchased the property in spite of the agreement.

Less than a day after The Rant reported on the city’s purchase – at which point local officials declined comment citing pending litigation other than to say there was “no merit to the claim that has been threatened” – Sanford government announced its plans to use up to $33 million in grant funding for a “Sanford Central Green” on the property that would stretch from Charlotte Avenue all the way to the current City Hall building on Weatherspoon Street. Jordan filed his lawsuit on November 30.

Court documents available show that Sanford City Attorney Susan Patterson let Jordan know via email on Nov. 6 that the city was moving forward with the purchase because “there has been no clear movement to purchase the building or to firm up a developers (sic) agreement for development of the property” and that “time is running out … to pull the trigger and gain control of the property.” But the same document shows that City Manager Hal Hegwer had already signed the purchase agreement three days prior.  The city council didn’t approve an action to make the purchase for another 18 days – on November 21.

The situation has already caused political fallout. On December 4, the city council voted 6-1 to censure at large Councilwoman Linda Rhodes for allegedly disclosing closed session information to a member of the public. Details weren’t made public at the time, but all indications were that Rhodes’ alleged disclosure involved details about the city’s move to purchase the property – a process which happened almost entirely in council sessions that were closed to the public.

Sanford city officials couldn’t be reached for comment Monday, but have consistently declined when asked, citing a city policy against speaking about pending litigation.