The linkage deal was signed three years ago by Kelly who was council president at the time and former BRA director Thomas O'Brien, who wanted to get South Boston's support for the proposed convention center that would be built in that district. The South Boston Betterment Trust, a nonprofit group was established to collect linkage funds, which are payments that developers are required to give to the city here to benefit the community to compensate for the disruption caused by their development.

Housing officials from other neighborhoods sued in Federal court, especially since it was believed that South Boston officials were not going to support equal opportunity housing for outsiders or minorities. The mayor settled the case and nullified the agreement on Nov. 16. The city has since promise to distribute the funds more evenly. The money is significant, as real estate in the Boston area has exploded in recent years. Reportedly, the trust could have gotten as much as $65 million from the deal. The trust has since sued, claiming that the city had no right to nullify a binding contract.

Judge Fahey did not buy the BRA's argument regarding Kelly's conflict of interest, which, they stated, as city councilor, means that he did not have the right to sign a contract on behalf of South Boston. Judge Fahey pointed out that the BRA's director also signed the original agreement. A hearing date has been set for March 29.