A vacant downtown property once expected to become a major redevelopment site is now tied up in a lawsuit after the sale of Summit’s former firehouse collapsed.

Developer K&K, affiliated with Garden Homes, sued the city after backing out of the $5.45 million purchase agreement for 396 Broad St., alleging Summit failed to disclose a 2001 parking agreement with St. Teresa’s Church that could affect redevelopment plans. The city has disputed the claim and said it will defend the lawsuit.

Councilmember Jaclyn Lasaracina addressed the case during Tuesday’s Common Council meeting, saying residents deserve updates because the dispute affects the entire community.

The former firehouse site, which sits at Broad Street, Cedar Street and Morris Avenue, has been vacant since the city opened its new station in 2024. The previous council approved the sale in December 2025, with proceeds expected to help pay down debt and offset costs from the new firehouse.

Any future redevelopment must include at least seven affordable housing units and address parking requirements tied to the St. Teresa’s agreement.

No new timeline has been announced for a potential sale or redevelopment of the property. The lawsuit remains in its early stages.