Apparently, the developer who wants to renovate the Wiley Building is suing the owner of the property George Nerhan.
Manske and Associates are suing Nerhan to force him to comply with the agreement that was set as part of a negotiated agreement to purchase the downtown building.
The lawsuit filed in District Court Tuesday argues that Nerhan is not honoring the agreement and that they paid 20-thousand dollars back in January with the option to pay for the building later. They wanted to make sure tax credits they were seeking for the project was approved. They would then pay 950-thousand for the purchase of the building.
Jack Manske of Manske and Associates issued a short statement on the lawsuit to Eagle Radio.
“We decided it was necessary to take legal action in order to keep plans for the Wiley project moving forward.” he then referred all additional details of the lawsuit to Brad Dillon, who is acting as legal counsel to “Wiley Plaza Development, L.L.C.,” the company formed for the project development.
Manske told the Hutch Post, he’s confident the project will go as planned.
The lawsuit indicates that on June 17, Manske confirmed in a telephone conversation with Nerhan that he intended to exercise the option to purchase the property, then on June 24, he mailed a written notice to purchase the property.
On July 7, Nerhan’s attorney notified Manske that the option was not longer valid. But on July 19, a representative from Reno Abstract and Title, Todd Brown spoke with Nerhan by phone to arrange a closing date for the transaction. Nerhan reportedly told Brown that they could close on July 25. On July 22, Nerhan reportedly called Reno Abstract and Title and requested that a settlement statement be faxed to his business location in Arkansas the next day, July 23. He then called on Juky 23, stating he had not received the settlement statement, so it was sent again, and he then called again stating he had received it.
On July 24, he was in the offices of Reno Abstract and Title and reviewed the documents he would sign the following day, the date of the closing. But, he failed to show for the closing that day. Manske was ready with a cashier’s check for the full amount promised under the option agreement.
So, Manske’s company, Wiley Plaza Development is suing Nerhan to enforce the agreement.
The state earlier this year approved 713-thousand dollars in tax credits for the project which will turn the building into affordable housing units.
Developers want to completely renovate the property into a mix of retail, two floors of office Space, 18-units of market rate housing and 37-units of income based rental housing.
The cost to renovate the property is estimated at 14.3-million dollars while the total cost will be around 16.9-million.
They are expected to begin work sometime this fall. Whether this lawsuit will delay that is unknown.