Federal Judge Dismisses Lawsuit Filed Against Cranberry in Land Development Dispute

say they are relieved that a federal judge dismissed a lawsuit filed by a land developer who sought millions in damages and accused the township and several current and former supervisors of racketeering.

“It was very time-consuming and very stressful,” said township Manager Jerry Andree, who was not named in the civil suit.

In the opinion issued Dec. 29, U.S. District Judge Nora Barry Fischer ruled in favor of the township’s request to dismiss the case filed by Ohio-based real estate developer Thomas W. Petrarca and his companies Cranberry Promenade, NAP Associates 2 Inc. and NAP Associates Inc.

The civil lawsuit, filed Sept. 11, 2009, named supervisors Dick Hadley, John Skorupan, Dave Root and Bruce Mazzoni and former supervisor John Milius as defendants. The suit also named as defendants Ron Henshaw, Cranberry’s director of community development; and John Trant, the township’s chief strategic planning officer.

Petrarca could not be reached for comment on the judge's order.

According to court documents, Petrarca said township officials denied his plans to build a now-defunct retail development called the Shoppes at the Woods on a former KOA campground on Route 228. He also accused the township of instead favoring a larger Simon Property Group development proposed for a location near his property.  

Simon at one time planned to build a mall on an 80-acre tract of land bordering Petrarca’s land on Route 288 and Interstate 79. Simon pulled out of the proposed project in 2009, saying the Pennsylvania Department of Transportation did not provide enough funding for improvements it requested to Route 228.

In the lawsuit, Petrarca said the township improperly changed its official map to reserve a road over his property in a location that suited Simon’s potential development—and was a detriment to his plans for a retail space.

The lawsuit also accused the township of violating the federal Racketeer Influenced and Corrupt Organizations Act; denying Petrarca his right to due process, substantive due process and equal protection; and civil conspiracy. 

In her ruling, Fischer concluded there was no evidence the township or its representatives committed constitutional violations or engaged in conduct that the RICO Act covers.

A Gamble Lost

At Tuesday’s board of supervisors meeting, Hadley read aloud the judge's conclusion in which she noted Petrarca had deemed himself to be a “sophisticated oddsmaker.” The judge also wrote in her order that Petrarca "along with his experienced counsel—gambled on a legal strategy to force their preferred development plans on Cranberry Township and lost.”   

“She nailed it with what the case was all about,” Hadley said.

Petrarca no longer owns the property on Route 228. In October 2010, ECHO Cranberry Associates bought the property for $5.25 million from Fifth Third Bank at a sheriff’s sale after the property went into foreclosure, according to court documents.

ECHO is moving forward with plans for theshopping center, a 98,940-square-foot retail space with a two-story Dick’s Sporting Goods store as its anchor. There also are plans for a gas station and convenience store on the property

Pittsburgh's Elmhurst Group will develop 90,000 square feet of business and professional office space in the same area.

Cranberry Crossroads is one of several major developments under way in the township. On Tuesday, Hadley said Cranberry had a successful year for development in 2011, issuing building permits for projects with an estimated value of $98 million.

“Because of its commitment, Cranberry continues to attract quality developers willing to invest in our community in the long-term,” he said.

A Lengthy History

Petrarca's history with the development dates to 2003, when another company with which he was affiliated filed an application with Cranberry to construct a retail plaza with a fast-food restaurant and a bank on the former Gantzer Campgrounds property on Route 228. 

The township denied the applications. Solicitor Vicki Beatty said the plans did not address traffic issues or take into account an official map the township adopted in 2000 showing a road that would connect Route 228 to Mars Road. The proposed road ran through Petrarca’s property.

An appeal of that decision Petrarca filed with Butler County Common Pleas Court eventually was dismissed, according to court documents. 

In 2007, Cranberry revised its official map. Those revisions included replacing the proposed road running through Petrarca’s property with a road following a different route on the property, according to court documents. That road was intended to improve the flow of traffic that the proposed developments, including the Simon Mall, would generate, according to Andree, the township manager.

Petrarca, who had bought additional parcels of adjacent land on Route 228, in August 2007 filed an application with Cranberry to develop a 134,000-square-foot shopping plaza.

Beatty said that plan didn’t take into account the modified road the township adopted in 2007. In court documents, Petrarca testified his development would “not work” with the proposed road running through his property as depicted.

At the township planning advisory commission's recommendation, Cranberry’s board of supervisors on March 6, 2009, denied Petrarca’s application, citing failure to conform to the 2007 official map and failure to mitigate traffic that the development on Route 228 and other areas would add to the road.

Petrarca appealed that decision to Butler County Common Pleas Court, but he held off on taking additional action in that action while he pursued the federal lawsuit, according to court documents.

Beatty said Cranberry now plans to seek the dismissal of Petrarca's pending appeals in county Common Pleas Court as well.

“There’s nothing to litigate at this point,” she said.

Click on the PDF toward the right side of this page (below the photo) to read the full version of Judge Fischer's Dec. 29 opinion.