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Cypress Creek mall builder, developers spread blame

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By KEVIN WIATROWSKI

kwiatrowski@tampatrib.com

Published: November 5, 2009

WESLEY CHAPEL - The 2007 deal between the developers of Cypress Creek Town Center and Kearney Construction Co. promised to be lucrative for both parties.

Kearney would make nearly $3.5 million in exchange for preparing the 510-acre mall site in central Pasco County for construction. J.G. Cypress LLC, the partnership combining Cleveland mall builder the Richard E. Jacobs Group and landowner John R. "Hi" Sierra Jr., would take the first steps toward their long-anticipated regional shopping complex, including a 1-million-square-foot mall. The project straddles State Road 56 just west of Interstate 75.

Those plans came crashing down in January when torrential rains flooded the barren site and polluted nearby Cypress Creek with muddy water. Federal regulators suspended the project's development permit, putting a halt to work there.

Now the two companies are spending thousands of dollars fighting each other in court. Each side blames the other for the problems that have crippled the mall project.

In the meantime, the developers' competitors, the Shops at Wiregrass and The Grove at Wesley Chapel, continue to add tenants. The Wiregrass mall will celebrate its first anniversary at the end of this week.

Kearney filed for bankruptcy protection in August, complicating its fight with J.G. Cypress.

Neither party's attorneys have returned calls seeking comment.

J.G. Cypress claims both sides agreed last year to work out their differences without a court fight. A short time later, the developers say, Kearney sued them. The suit also names as defendants Target Corp. and Kohl's Department Stores, which are supposed to be anchor tenants at the mall.

Kearney officials claim the developers micromanaged work on the site, then fired Kearney when the project went awry. Kearney says the developers owe it more than $1.5 million.

The mall developers call Kearney "a serial polluter" with a long history of citations and fines for shoddy work in Hillsborough County. They also claim that after the Army Corps of Engineers suspended the mall's development permit, Kearney refused to help mothball the site until the developers paid it more money.

Soon after the permit was suspended, J.G. Cypress fired Kearney, saying the company failed to control runoff from the site as required under its contract.

About a year ago, Kearney sued J.G. Cypress, demanding the unpaid balance of its contract. The developers countersued this summer, accusing Kearney of playing the victim when its actions caused the problems.

The developers say the delays related to the suspended permit have cost them millions of dollars in lost contracts and other problems.

This summer, the Army Corps restored the mall's development permit. The project remains on hold while developers retool and wait for the economy to recover.

Reporter Kevin Wiatrowski can be reached at (813) 731-8168.

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