May 25, 2009
Pullman Legal Fees More Than Not Paying Rent and Contractor Suits
Trail Goes Back to Chi Chi’s
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – At its board meeting The Tri-State Transit Authority voted to allow Pullman Square’s private developer, Metropolitan Partners, to pay $18,750 rather than $37,500 on its monthly lease through December 2009. Bill Dargusch told the TTA Board that his company which leases the private portion has cash flow problems.
Dargusch has been quoted as stating that this relates mainly to “legal fees.”
TTA Board Member Mary Neely told HNN Sunday, May 24, 2009 that the litigation expenses incurred by Metropolitan do not simply include the rent payments of Moe’s and Chicago Grill.
“They go way back to Chi Chi’s,” Neely said.
Prior to dirt flying on the site, the popular Mexican restaurant had the Tenth Street corner for its free-standing eatery. Developers insisted the project could not go forward without acquisition of Chi Chi’s property. Those legal fees and others incurred during the frequent public/private fund raising issues incurred additional legal expenses.
Neely, who spoke recently with Dargusch at one of many retirement parties for longtime TTA President/CEO, Vicki Shaffer, told HNN that the Columbus developer remains enthusiastic about Pullman Square. She referred to it as one of his “baby’s.”
TTA has been allowed to examine financial reports on the private section. Rent and construction suits plagued Moe’s (both times) and the initial Pizza Uno Chicago Grill. Dargusch has taken over operation of Empire Books and Uno with Tim Rollins as his partner there. Neely referred to one other business there as having struggled from its opening, The Funny Bone.
The garages, theatre, streets, sidewalks, and common areas are owned by TTA. Metropolitan leases that section for $450,000 per year.
When asking for the rent deferral, Metropolitan allowed auditors for TTA to examine its finances on the project. According to a published report, an interest reset occurs in January 2010 for the developers, which will free up the deferred funds. The deferred amount --- $225,000 --- will be repaid over the remaining years of its lease.
Pullman cost about $60 million. TTA obtained about $27 million from FTA grants, the West Virginia Economic Development Committee added $10.4 million and Metropolitan invested $22.5 million.
Neely stressed the importance the center has been to downtown revival. She added without it, city streets and sidewalks would be deserted. Development of properties on Third Avenue across from the Square have slowly grown too. AT&T, the Marshall Culinary Institute, Le Cook Store, Latta’s Toys, the Underwood law firm, a paper creations gift shop, and the Hibatchi have opened. Several other south Third Avenue properties remain unleased, but ready, like several sections of Pullman Square.
Dargusch has been quoted as attempting to obtain $15 million in funds from FTA, but so far Rep. Nick Rahall has not been able to obtain the money. Metropolitan intends to try other sources for revenue to pay down their debt, including the Huntington-Ironton Empowerment Zone and the W.Va. Development Office.
Previously, Metropolitan put its portion up for sale but in the current melted down commercial estate market, a buyer was not found. The developer continues to manage the public portion, but would like to turn that over to TTA.
The greatest irony at Pullman may be the Moe’s Southwest Grill saga which then became a Dargusch owned Don Amigos. Strangely, since the eviction of Chi Chi’s, itself a Mexican Restaurant chain that went bankrupt, efforts to place a Mexican eatery at Pullman have ended unhappily.
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Pullman Legal Fees More Than Not Paying Rent and Contractor Suits
Trail Goes Back to Chi Chi’s
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – At its board meeting The Tri-State Transit Authority voted to allow Pullman Square’s private developer, Metropolitan Partners, to pay $18,750 rather than $37,500 on its monthly lease through December 2009. Bill Dargusch told the TTA Board that his company which leases the private portion has cash flow problems.
Dargusch has been quoted as stating that this relates mainly to “legal fees.”
TTA Board Member Mary Neely told HNN Sunday, May 24, 2009 that the litigation expenses incurred by Metropolitan do not simply include the rent payments of Moe’s and Chicago Grill.
“They go way back to Chi Chi’s,” Neely said.
Prior to dirt flying on the site, the popular Mexican restaurant had the Tenth Street corner for its free-standing eatery. Developers insisted the project could not go forward without acquisition of Chi Chi’s property. Those legal fees and others incurred during the frequent public/private fund raising issues incurred additional legal expenses.
Neely, who spoke recently with Dargusch at one of many retirement parties for longtime TTA President/CEO, Vicki Shaffer, told HNN that the Columbus developer remains enthusiastic about Pullman Square. She referred to it as one of his “baby’s.”
TTA has been allowed to examine financial reports on the private section. Rent and construction suits plagued Moe’s (both times) and the initial Pizza Uno Chicago Grill. Dargusch has taken over operation of Empire Books and Uno with Tim Rollins as his partner there. Neely referred to one other business there as having struggled from its opening, The Funny Bone.
The garages, theatre, streets, sidewalks, and common areas are owned by TTA. Metropolitan leases that section for $450,000 per year.
When asking for the rent deferral, Metropolitan allowed auditors for TTA to examine its finances on the project. According to a published report, an interest reset occurs in January 2010 for the developers, which will free up the deferred funds. The deferred amount --- $225,000 --- will be repaid over the remaining years of its lease.
Pullman cost about $60 million. TTA obtained about $27 million from FTA grants, the West Virginia Economic Development Committee added $10.4 million and Metropolitan invested $22.5 million.
Neely stressed the importance the center has been to downtown revival. She added without it, city streets and sidewalks would be deserted. Development of properties on Third Avenue across from the Square have slowly grown too. AT&T, the Marshall Culinary Institute, Le Cook Store, Latta’s Toys, the Underwood law firm, a paper creations gift shop, and the Hibatchi have opened. Several other south Third Avenue properties remain unleased, but ready, like several sections of Pullman Square.
Dargusch has been quoted as attempting to obtain $15 million in funds from FTA, but so far Rep. Nick Rahall has not been able to obtain the money. Metropolitan intends to try other sources for revenue to pay down their debt, including the Huntington-Ironton Empowerment Zone and the W.Va. Development Office.
Previously, Metropolitan put its portion up for sale but in the current melted down commercial estate market, a buyer was not found. The developer continues to manage the public portion, but would like to turn that over to TTA.
The greatest irony at Pullman may be the Moe’s Southwest Grill saga which then became a Dargusch owned Don Amigos. Strangely, since the eviction of Chi Chi’s, itself a Mexican Restaurant chain that went bankrupt, efforts to place a Mexican eatery at Pullman have ended unhappily.
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