Developer Sues City of Norfolk in Casino Dispute

Cordish Companies

 

Cordish Companies is suing the City of Norfolk for $100 million, alleging in its complaint that in a 2013 agreement to develop the Waterside property, the city promised to support Cordish’s effort to build a casino if casinos were legalized. The city is supporting a different proposal led by the Pamunkey Tribe, approved by the voters in November 2020. City Attorney Bernard Pishko said the complaint is not based in fact.

The Cordish lawsuit states, “Instead of keeping their contractual promises to ND [Norfolk District Associates, a Cordish LLC], Defendants, motivated by a personal agenda, conspired with the Pamunkey Tribe, Yarbrough, and Golden Eagle to deprive ND of its rights to develop a casino at Waterside.”

Casinos weren’t legalized in Virginia until 2020, but the complaint states that Norfolk had been in talks with the Pamunkey Tribe to develop a casino since 2018. The 2020 legislation requires cities to hold referenda to approve casino development. According to the Cordish complaint, the law allows the City to choose its developer. Both before and after the November 2020 referendum, Cordish has spoken out against Norfolk; in November, Wavy.com reported that Cordish planned to sue.

The complaint lists several counts against the city, including breach of contract and two kinds of conspiracy, alleging that Pishko “intentionally interfered with ND’s business expectancy.”

“The City’s newly public agreements revealed that not only had the City and Pishko been discussing a casino with the Tribe for years in violation of the City’s promises to ND in the Lease Agreement, but the City had also guaranteed the Tribe exclusivity for the casino — a right the City and already contractually granted to ND in 2013,” the complaint states.

The lawsuit alleges that Pishko worked “outside the scope of his employment, to grant preferred status to the Tribe.”

Yes, Every Kid

“Upon information and belief, Pishko’s actions evidence that he believes he is the ‘real mayor’ of Norfolk,” another part of the lawsuit alleges.

In a statement, Pishko told Wavy.com, “There is no truth to their allegation that I said I was the real mayor.”

“Their complaint is not based in fact and is so defamatory that they asked that if I accepted their offer to receive a copy in advance in order to discuss settlement that I would have to agree to not sue them for defamation. A filed lawsuit is generally exempted from defamation laws but a pre-filed complaint is not. Their central allegation that the Waterside lease provides for Cordish to be the exclusive gambling operator is fiction,” Pishko said.

Still, Pishko told Wavy.com that he was willing to meet with Cordish to discuss a potential Cordish casino. “They have declined, and instead said, ‘We are going to sue you instead,'” Pishko said.

Representatives for Cordish, Norfolk, and Pishko did not respond to requests for comment.

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Eric Burk is a reporter at The Virginia Star and the Star News Network.  Email tips to [email protected].
Photo “Cordish Companies” by Cordish Companies.

 

 

 

 

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