12, 1986, David Carley and Douglas Harbit met with City Manager Robert Williams, Mayor Joseph Ritchie, and Acting Director of Development Barbara Sardella, in Newport News, to discuss the future of the Courthouse project. In the meeting, David Carley insisted that he had enforceable rights under the 1984 Agreement, neither party made any mention of Article I(L)2, of the Courthouse Building Lease. The parties mutually decided that, rather than pursue a legal challenge to the courthouse legislation, they would attempt to reach an agreement on an alternative development scenario, which would provide additional developmental opportunities to Carley.
34. Although the 1984 Agreement did not obligate the City to rent space in Washington Tower West, the City, by city council action on December 18, 1985, agreed to rent some 40,722square feet in that building.
35. Upon the approval of the Washington Tower West lease, Carley, acting with the assistance of the Housing Authority, had closed on $9,715,000 in industrial revenue bonds to finance the Washington Tower project on December 12, 1985.
36. However, when the Courthouse project was called into question in March 1986, Carley decided not to proceed with the Washington Tower West project. The decision was to concentrate on obtaining a substitute for the Courthouse project. From this point on, Carley made no attempt to obtain further prelease commitments for the Washington Tower West Building as a stand-alone project. Instead, Carley proposed to reduce that building in scope and to obtain "half a courthouse" in the form of a "Social Service Building" to be leased to the