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Ally Pally lawsuit in the pipeline

PUBLISHED: 17:11 09 October 2008 | UPDATED: 15:29 07 September 2010

Concern is mounting that a millionaire property developer plans to sue Haringey Council after his attempt to turn Alexandra Palace into a hotel and leisure complex failed. Firoz Kassam is believed to be seeking compensation over the handling of the deal.

Concern is mounting that a millionaire property developer plans to sue Haringey Council after his attempt to turn Alexandra Palace into a hotel and leisure complex failed.

Firoz Kassam is believed to be seeking compensation over the handling of the deal.

Mr Kassam had planned to take over the 125-year lease of Alexandra Palace through his company Firoka and develop it into a 150-bed hotel complex with bars, an ice rink and casino.

But the High Court ruled a year ago this week that the public consultation into the process was "fatally flawed" because the terms of the deal between Firoka and the Alexandra Palace and Charitable Trust - which runs the site for the council, had not been made public. In January he was forced to move out of the building and he later withdrew from all negotiations, citing the trust's slow progress over its plans for a second consultation process.

Although Haringey Council has said that no legal action has been launched, the Broadway understands that Kassam's lawyers have been in regular contact with the trust and that the most recent letter, which was sent in August, indicated that he planned to sue.

A spokeswoman for Firoka said that she was unable to comment and that Mr Kassam was out of the country. A spokesperson for Haringey Council has also said that no legal action has commenced.

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