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State Supreme Court Justice Jacqueline M. Koshian has signed an order directing the attorney for Elmer A. Granchelli to show why the developer should not be held in contempt of court for not handing the South Block over to the City of Lockport.

The matter will be heard in court in Niagara Falls at 10:30 a.m. Nov. 3, Lockport Corporation Counsel John J. Ottaviano said Friday.

Justice Koshian and the state Appellate Division have ruled that Granchelli must hand over the vacant Main Street parcel to the city because he had not kept an agreement to begin construction on a retail building there.

The State Court of Appeals refused to hear Granchelli's appeal.

Ottaviano said the city is seeking damages of $1,000 a day for each day Granchelli does not deliver the deed and also to have Granchelli forfeit a $5,000 bond he posted when he filed his original appeal.

The latest court action also seeks Justice Koshian's permission to have the Niagara County sheriff sign the deed instead of Granchelli.

Ottaviano sent Granchelli's attorney, Peter S. Gilfillan, a letter two weeks ago warning that a contempt action would be begun unless Granchelli surrendered the deed. He said Gilfillan was sent a city check in June for $64,978.76, representing the city's offer to buy the lot for $1.50 per square foot.

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