City of Cambridge files lawsuit against Cambridge Waterfront Development Inc.

CAMBRIDGE - The City of Cambridge filed a lawsuit May 1 in Dorchester County against Cambridge Waterfront Development, Inc. (CWDI), CWDI Holdings, and Yacht Maintenance.

The lawsuit seeks $75,000 in damages and requests the Court issue a temporary, preliminary, and permanent injunctive relief enjoining Defendants from transferring any portion of property in violation of the covenants of a 2022 Transfer Agreement.

According to a press release issued by via the office of outgoing City Manager Tom Carroll, the City filed the lawsuit “because CWDI has plainly violated covenants included in a 2022 transfer of approximately 10 acres of land from the City of Cambridge to CWDI. CWDI was planning to subdivide the property the City conveyed in 2022 and attempt to sell approximately 2.6 acres of property the City had given to CWDI to Yacht Maintenance, further violating the covenants from the legally binding transfer agreement.”

The release further states. “The City has worked diligently to avoid litigation against CWDI. On October 24, 2023, the City informed CWDI that the City did not support the Cambridge Harbor project because, among several reasons, CWDI had decided to serve as their own master site developer. The transfer agreement from 2022 required CWDI to select a master developer or other developers for the project after having made the results of a request for proposals process public. CWDI did not issue a request for proposals, did not make public the results of any developer expressions of interest, or select a master developer. All of these are clear violations of the 2022 transfer agreement.”

Mr. Carroll voiced regret that the City had to file a lawsuit to protect the interests of the community and the taxpayers.

“More than six months after the City voiced our concerns publicly, CWDI remains in clear breach of the transfer agreement and is attempting to further breach the covenants we agreed to only two years ago," Carroll said. "It is unfortunate that the CWDI board and its executive director have forced the City to take legal action.

"But the City has no choice other than to protect the interests of the Cambridge community and our taxpayers from CWDI.” Carroll added that CWDI has the ability to end this lawsuit by fulfilling the commitments it made two years ago when it accepted the transfer of about 10 acres of land from the City for $5.00."