Laudisio sues 29th Street owner

BOULDER – Laudisio, a local Italian restaurant, has filed a lawsuit in Boulder County District Court against its landlord at Twenty Ninth Street.

The restaurant alleges that Twenty Ninth Street owner The Macerich Partnership LP, the operating partner of The Macerich Company (NYSE:MAC), has caused the restaurant economic losses in excess of $1 million due to less foot traffic than promised and other incurred costs.

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Laudisio signed a lease Feb. 28, 2006 to move its restaurant from North Boulder to the new Twenty Ninth Street retail district in Boulder, developed and owned by California-based Macerich. The restaurant opened for business on Oct. 13, 2006.

The suit, filed July 24, claims that Laudisio “relied on the landlord’s representations as to foot traffic of at least 1 million people annually, when it agreed to become a tenant and prior to investing more than $3 million into the restaurant project.”

The restaurant points to delayed openings of the 16-screen movie theater, the Wild Oats grocery store and other restaurants that Macerich had said would generate the foot traffic.

Laudisio added it was required by Macerich to open by Oct. 13, 2006 (the retail district’s grand opening), or face large financial penalties. It claims that it spent $204,026 in additional build-out costs to meet that deadline.

The restaurant said it attempted to resolve the problems with Macerich amicably, but could not reach an agreement. It is asking the court’s approval to pay its monthly rent to the court rather than Macerich until the court determines the final outcome to the case.

Laudisio claims that Macerich is deriving economic benefits from the restaurant’s status of an anchor while Laudisio loses money due to the lack of promised foot traffic. The restaurant is requesting that Macerich stop charging rent until the theater opens, credit rent that Laudisio has paid to date and share any financial penalties that Macerich might be receiving for the other tenants failing to open.

Broomfield-based Schaden, Katzman, Lampert & McClune is representing Via 29 LLC, Laudisio’s ownership entity.

Lori Giggey, marketing manager at Twenty Ninth Street, said the company has not yet seen the lawsuit and could not comment.

The Laudisio family has declined to comment beyond what is contained in the lawsuit.