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Lord & Taylor, White Flint Mall Appear Headed Toward Settlement

By WTOP Staff

White Flint Mall (file photo)After a legal dust-up this summer, it appears Lord & Taylor and White Flint Mall are headed toward a settlement that would keep the department store in the mall’s redevelopment plans.

In July, Lord & Taylor filed suit in federal court to stop Lerner Enterprises from rebuilding the site into a planned mixed-use development. The store claimed the redevelopment would violate the 1975 lease agreement that brought it to Rockville Pike.

In August, Lerner Enterprises fired back with a counter suit claiming millions in damages and saying the New York-based department store timed the lawsuit in order to get a settlement payment.

On Sept. 24, a federal judge granted White Flint’s motion for a partial summary judgement to settle the matter without a trial. The parties held a mediation conference on Oct. 8 in front of Chief Magistrate Judge William Connelly and two more mediation conferences before a follow-up scheduled for Friday, Nov. 8, according to court documents.

Connelly wrote that representatives from Hudson’s Bay Company (which owns and operates Lord & Taylor) and Lerner Enterprises will “review and discuss aspects of lord & Taylor’s continued tenancy at White Flint.”

A settlement hearing is scheduled for Dec. 20.

In September, Lord & Taylor responded to White Flint’s Mall counterclaim by saying “greed” was “White Flint’s driving motive in this case.”

As the mall prepares for redevelopment, most of its tenants have vacated. Lord & Taylor claimed many of those tenants have been pushed out.

Lord & Taylor also said White Flint misrepresented its position on the redevelopment. In its countersuit, White Flint Mall claimed the department store showed no sign of opposition to the redevelopment plan and had in fact engaged in conversations about how it would fit in to the new, mixed-use town center:

White Flint was on notice repeatedly of Lord & Taylor’s objection. To that end, White Flint submitted the preliminary Sketch Plan to the County on February 15, 2012. Almost immediately thereafter, on March 9, 2012, Lord & Taylor wrote to White Flint stating:

We are in receipt of the “Notice of Sketch Plan Application” dated February 15, 2012 in regard to the proposed redevelopment of the White Flint Mall in Kensington, MD. Please be advised that the proposed plan is in clear violation of the Construction, Operation, and Reciprocal Easement Agreement dated as of September 2, 1975. . . . Please take note that we do not consent to the plan and will fully and vigorously defend our rights in regard to this matter.

Lord & Taylor also said it had White Flint get a development consultant to figure out how the department store would fit in the redevelopment.

“All of the changes proposed by Lord & Taylor, however, were ultimately rejected,” Lord & Taylor claimed in its Sept. 5 motion to dismiss White Flint’s counterclaim. “As a result of this and what appeared to be an increasing effort on behalf of White Flint to empty out the existing Enclosed Shopping Center, Lord & Taylor sent a notice of default to White Flint outlining how the proposed redevelopment violated the REA, and asked White Flint to take steps to cure these issues.”

After White Flint did not respond, Lord & Taylor said it finally filed suit.

White Flint Mall’s preliminary plan for redevelopment is expected to go before the county’s Planning Board sometime before the end of the year.

The sketch plan, approved by the Planning Board last fall, calls for 5.22 million square feet of office, residential, retail and other uses around a town square with a new White Flint Neighborhood Park and space for a 400-student elementary school. The sketch plan showed the existing Lord and Taylor building remaining.

Earlier this year, White Flint Mall demolished the structure that was formerly home to Bloomingdale’s. In its counterclaim against Lord & Taylor, the mall said its negotiating to bring back Bloomingdale’s and is talking to a number of other potential anchor tenants.

The Cheesecake Factory, which serves as an anchor restaurant, is in the process of building a new space at Westfield Montgomery Mall. Employees said the restaurant hopes to be able to close the White Flint location and almost immediately make the move to Westfield in November.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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