Developers of YSU apartment complex asking for summary judgment in lawsuit against city
The developers of a YSU apartment complex have filed a motion for summary judgment in an ongoing lawsuit against the City of Youngstown.
According to a motion filed in Judge John Durkin's Court on March 12, the developers of The Enclave student apartment complex Youngstown Campus Associates LLC (YCA) along with Butterfli Holdings LLC are asking the court to make a judgment on their claims without going to trial.
The lawsuit in question was filed back in September of 2023 with the developers stating that they entered an agreement with the city back in 2017, which included a $500,000 infrastructure grant.
According to court documents, the city has only paid YCA $60,000 of that money all the way back in February of 2018, leaving the other $440,000 unpaid.
The document states that the motion for summary judgment would force the city to produce evidence showing that there is a genuine issue for trial.
The documents go on to state that the evidence that the city did not pay them the remaining balance of the grant is "undisputed."
"The city received from YCA more than enough documentation to be paid the $440,000," the motion reads.
"Although the city paid $60,000, it is undisputed that the city failed to pay the remaining $440,000 due on the water infrastructure grant and [the developers] are damaged in the principal amount of $440,000," the document continues.
Court documents further state that the city confirmed receipt of the previously mentioned documentation regarding the money sent on October 18, 2018, allegedly responding on November 28, 2018 stating that the payment request was "with the law department."
The document goes on to discuss the city's defense in this case.
"It is no secret the city will primarily defend this matter by contending the city is not required to pay the remaining $440,000 because of the Auditor of State's findings regarding the city's water and sewer development grant programs," the motion reads.
This is referring to a ruling from the Auditor of State that Ohio law prohibits the city to use surplus water or sewer funds for economic incentives.
However, the developers argue that the Auditor of State did not find the grants or grant agreements themselves to be invalid, but instead should have come from other sources.
"Based on the Auditor's findings, the General and/or Business Development Funds can be used by the city to pay for the grants, including the water infrastructure grants owed to YCA," the document reads.
The developers further argue that the Auditor did not issue any "Findings for Recovery" to any developer who had received water or water infrastructure grants.
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