State closes deal for Family Court property

The state has closed a deal for a Family Court property, paying $1.1 million to a developer for the rights to the site at 15th and Arch Streets.

A groundbreaking is expected soon for the courthouse, which will be dedicated to matters such as juvenile cases and divorces. It will replace rundown courtrooms in two outdated buildings, said Pennsylvania Chief Justice Ronald D. Castille.

One of the existing buildings, Castille said, has downstairs cell rooms used for defendants in nonpayment of child-support cases. The rooms are in such poor condition, he said, that "if you had dogs in them, the SPCA would be on your case."

Castille, in his role as overseer of Philadelphia's court system, signed off on a plan to pay developer Donald W. Pulver to put up the 14-story building. But that plan fell apart after The Inquirer reported that Pulver had become partners with Castille's real-estate attorney, Jeffrey B. Rotwitt.

Castille said he never knew about Rotwitt's dual roles. The state Department of General Services later took over as developer.

Castille said in an interview that he next plans to focus on trying to get the return of $1.4 million in fees paid to Rotwitt's former law firm, Obermayer Rebmann Maxwell & Hippel.

Castille says he believes that Rotwitt violated the attorney rules of professional conduct by not giving a proper disclosure of his dealings with Pulver.

"We'll see if Obermayer wants to do the right thing," Castille said, accusing the firm of "legal malpractice."

Rotwitt has insisted that he was completely open with Castille. Asked for comment Friday, he said: "Having worked closely with the chief justice for so long to make this a reality, I am thrilled that this much-needed project has begun."

Walter Cohen, an Obermayer partner, said the negotiations on the fees have been going on for almost a year. He declined further comment.

In a statement, Pulver said he did a lot of work to move the project forward and was willing to provide "whatever support and expertise I can" as the project is built. With the payment Friday from the state, he has received more than $2 million.

All told, the courts paid $12 million in fees before the original deal was canceled. The largest share went for architectural plans.

The next step is final construction agreements. The project, led by general contractor Daniel J. Keating, will cost $140 million. Before The Inquirer story, the projected cost was $200 million.

Castille hired William G. Chadwick, his friend and former deputy in the Philadelphia District Attorney's Office, to review the project and potential claims against Obermayer and others. Chadwick's firm has been paid $520,000 thus far, according to court records.

"Our lawyers don't want us to release the report right now," Castille said. "They're worried it will give away our strategy."

Castille said he still intended to release the report once a settlement is reached.

"As we said in the beginning, we're going to have a public accounting at the appropriate time," he said.