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MICHAEL KARP AND AMY KARP INDIVIDUALLY AND GENERAL PARTNERS UNIVERSITY CLUB ASSOCIATES v. REDEVELOPMENT AUTHORITY CITY PHILADELPHIA (11/22/89)

decided: November 22, 1989.

MICHAEL KARP AND AMY KARP INDIVIDUALLY AND GENERAL PARTNERS OF UNIVERSITY CLUB ASSOCIATES, A PARTNERSHIP, APPELLANTS,
v.
REDEVELOPMENT AUTHORITY OF THE CITY OF PHILADELPHIA, LEE A. CASPER, EDWARD A. KEENAN, KATHLEEN MULHERN AND ALICE LIPSCOMB AND OFFICE OF COMMUNITY DEVELOPMENT OF THE CITY OF PHILADELPHIA AND DANICO, INC. ET AL., APPELLEES



Appeal from Common Pleas Court, Philadelphia County, Honorable Berel Ceasar, Judge.

COUNSEL

Barry E. Ungar, with him, Janet S. Holcombe and Rachel B. Mann, Mann and Ungar, P.A., Philadelphia, for appellants.

Rudolph Garcia, with him, George C. McFarland, Jr., Saul, Ewing, Remick & Saul, Philadelphia, for appellees, The Redevelopment Authority of the City of Philadelphia, Lee A. Casper, Edward C. Keenan, Kathleen Mulhern and Alice Lipscomb.

Herbert G. Keene, Jr., with him, John J. Murphy III, and Paula D. Shaffner, Stradley, Ronon, Stevens & Young, Philadelphia, for appellees, Danico, Inc. and Renaissance Investment Company, Partners trading as Chestnut Commons, Ltd.

Barry, McGinley and Smith, JJ.

Author: Barry

[ 129 Pa. Commw. Page 620]

OPINION

The Redevelopment Authority of the City of Philadelphia (RDA), appellee, invited bids in October of 1985 for the purchase and development of a piece of real estate in the University City Urban Renewal area. The bidding requirements contained in the bid invitation included an obligation to deposit ten percent of the bid price and a statement that it is the developer's responsibility to document its financial capability to undertake the project. After the bids were submitted, they were forwarded to the Technical Evaluation

[ 129 Pa. Commw. Page 621]

Committee (TEC) which examined the bids and made a recommendation to the Board of the RDA. Robert Hazen, who is both a member of the TEC and the executive director of the Board, made the actual recommendation which was to award the contract to Chestnut Commons, Ltd. (Chestnut Commons), appellee. The Board accepted this recommendation and voted to award the redevelopment contract to Chestnut Commons.*fn1

Appellants, Michael and Amy Karp, general partners of University Club Associates, submitted a bid to develop the parcel of land in question which was rejected in favor of Chestnut Commons. Appellants brought a suit in the Court of Common Pleas of Philadelphia County seeking equitable relief and damages. The trial court bifurcated the case so that it could first decide the equitable issues. The equitable relief sought by appellants was that the award by the Redevelopment Authority be declared null and void, that appellees be enjoined from entering into any contract pursuant to the award, and that any contract which had already been entered into be declared void. After a trial, the court initially determined that Chestnut Commons had not complied with the ten percent bid deposit requirement and ordered that the selection of Chestnut Commons be null and void. After post trial motions were filed the court overruled its earlier order and declared the award valid. This appeal followed.

Appellants argue that the RDA's selection of Chestnut Commons was arbitrary and capricious and a violation of the competitive bidding process. Specifically they argue that the decision was not based upon informed expert judgments, that Robert Hazen improperly ...


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