The feud between Jersey City Mayor Steve Fulop and the nonprofit organization that operates the Landmark Loew's Jersey Theatre is headed to court, with the nonprofit filing a lawsuit today claiming Fulop's decision to seek an outside management firm to run the legendary Journal Square theater is in violation of a 2004 lease between the city and the nonprofit.

The nonprofit, Friends of the Loew’s (FOL), says in the 13-page lawsuit that the city has broken its promise to assist FOL in finding funding for capital improvements, and specifically stood in the way as FOL sought grant money to repair the aging theater's air-conditioning system.

FOL also alleges that the city is guilty of “slander of title,” with the suit saying Fulop’s public statements about wanting a new firm to operate the theater has led third parties to cancel their bookings.

“It's actually already had a negative impact on FOL's ability to get certain customers into the theater,” said the group’s attorney, Cecilia M.E. Lindenfelser.

In the suit, filed today in Hudson County Superior Court, FOL asks the court to bar the city from finding another management firm to run the Loew's, in addition to unspecified damages and legal fees. The Jersey City Redevelopment Agency, which is the entity handling the city’s request for a new Loew’s management team, is also named as a defendant.

Asked to comment, city spokeswoman Jennifer Morrill blasted Patricia Giordan, president of FOL's board of trustees, and Colin Egan, the group's director.

"Patti and Colin's actions show this is more about protecting the $90,000 salary they personally take from the Loew's and not about what is best for the theater itself," Morrill said in a statement. "It begs the question, why are they afraid of a fair and open process? We trust the court will see this for what it is and allow the city to proceed."

The city says FOL is in violation of the 2004 lease, saying the group has failed to submit annual auditors reports, lease payments or a master plan.

The mayor, who was elected last May, has said he wants to transform the Loew’s into a “world class” entertainment venue rivaling the New Jersey Performing Arts Center.

Fulop told The Jersey Journal last week, after he mentioned his plan for the Loew's in his State of the City address, that the city has tried to work with FOL, to no avail. Referring to emails FOL sent to supporters about its clash with Fulop, the mayor said the group is trying to "bully" the city.

The 85-year-old former movie palace is owned by the city and operated by FOL, which rents the space for a nominal fee. The nonprofit was instrumental in saving the Loew's from a wrecking ball in the 1990s.

City officials claim FOL raised only $13,000 in donations in 2012, compared to NJPAC's $8.5 million and $824,000 for the Count Basie Theatre in Red Bank.