A more than yearlong legal battle is still underway after a local rental company filed 10 charges and requested $25,000 in damages against Athens city, claiming poor conditions of an adjacent road decreased some of its properties' values.
University Estates, LLC., filed the complaint against the city Aug. 28, 2009, with the U.S. District Court for the Southern District of Ohio, citing the poor condition of University Estates Boulevard, according to court documents.
UE claimed the city of Athens should maintain the street because of a Planned-Unit-Development contract the city signed with the company.
City Council President Bill Bias declined to comment on the case. University Estates' Lead Attorney Bret Adams also declined comment.
UE filed the complaint after an Athens City Council meeting was held without its representatives present to discuss buying 600 acres of the company's land, including University Estates Boulevard, according to the documents.
Silar Advisors, LP., and Asset Resolution, LLC. - who own the promissory note, the promise UE signed to pay Silar Advisors and Asset Resolution a $2,500,000 loan by a specific time, and an open-end mortgage of UE - were at the meeting. Silar Advisors and Asset Resolution were also listed among the defendants in the complaint, according to the documents.
On June 23, 2009, after the city council meeting, UE Company President Richard Conrad sent a letter to Mayor Paul Wiehl stating the land belonged to UE and any purchase negotiations should be handled through him. Conrad also stated that discussions with Silar Advisors were improper and should cease
according to court documents.
The city did not respond to the letter, while Bias said the city only proposed to buy the land if it were foreclosed upon.
In the Aug. 28 complaint, UE stated that, The actions of the City of Athens and Bias are motivated by its ill will toward Dr. Conrad and UE are not in the financial best interests of the financially troubled City of Athens and the actions of all defendants constitute a conspiracy to deprive UE of the property.
Late last year, six of the 10 charges were dismissed. The remaining four are breach of contract due to Silar Advisors and Asset Resolution speaking to the city without UE present, declaratory judgment because UE says it still has a right to the promissory note and open-end mortgage so it was entitled to be present, and deprivation of property interest without due process of law under both the United States Code and the Ohio Revised Code because the city decreased property value, according to the documents.
The city filed a motion to dismiss the charges Aug. 6, which is still pending.
I don't think we (the city) are going to lose a lot
Wiehl said.
Wiehl said he doubts the city will lose a lot in the suit, but said he is reluctant to speak on the case because it is still pending.
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Marika Lee
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