Developers of mixed use property that never panned out suing City of Portsmouth

PORTSMOUTH, Va. (WAVY) — The developers behind a once-planned mixed use property in Portsmouth are now suing the city, along with several members of the 2015-2016 city council.

The developer, Victory Crossing Developers II, LLC, entered into an agreement in 2007 with the Portsmouth Economic Development Authority to develop “Victory Village,” a mixed use property on about five acres of land off Victory Boulevard.

The project did not get off the ground after several revisions.

In the lawsuit, the developer alleges they invested a substantial amount of money into the project, including when a parcel of the land was sold to accommodate Tidewater Community College. The suit says when that happened, the developers had to “advance the funds to complete the infrastructure to accommodate TCC.”

In 2016, the city moved to buy back the project.

The developer is now suing for $25 million for breach of contract, tortious interference with contract and unjust enrichment. In support of those counts, the suit claims that various members of city council intentionally interfered with prospective contracts in an effort to prevent victory from completing the project.

10 On Your Side reached out to the attorney representing the developer, as well as the attorney for the City of Portsmouth and a city spokeswoman, but as of Friday night, had not heard back.