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June 4, 2008

Judge lets FM Global continue with new headquarters

PROVIDENCE -- A Superior Court judge has refused to halt construction at the site of FM Global's new heaquarters building in Johnston, but he warned that the insurance company could be forced to tear down the project at a later date.

The ruling of Judge Michael A. Silverstein keeps the project alive, but it casts a pall over the municipal permitting process that allowed construction to get underway earlier this spring.

The owner of FM Global’s existing headquarters, CapLease, has accused Johnston town officials of violating town zoning and planning regulations in a biased attempt to grease the skids for the project, which is regarded as one of the state’s most important economic development initiatives.

The landlord’s appeal of local zoning and planning decisions was filed in Superior Court last month. CapLease also asked Silverstein to halt the project while the court deals with the appeals.

In today’s ruling, Silverstein denied the requested stay, saying that CapLease had failed to present evidence showing that the continuation of construction at the site off Central Avenue would inflict irreparable harm.

Nonetheless, he warned FM Global that it might have to reverse its project if it decides to press on.

“The court simply will say the plaintiff has shown some likelihood of success with respect to the ultimate issues that likely will be before the court as it deals with the appeals,” Silverstein said.

-- Journal staff writer Mark Reynolds

Posted by Mike McKinney  at 12:00 PM | Permalink

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