This is the second time in less than a year Liberty Center has sued a former tenant. Last summer the new owners sued Illinois-based Family Entertainment Group LLC for $850,000 because it violated its contract by never moving In the Game into the mall development. There is a bench trial scheduled for January 2023.
The lawsuit claims Family Entertainment Group LLC signed a lease agreement to move an In the Game entertainment center into 16,879 square feet of space at the mall in Liberty Twp. The move-in date was supposed to be Sept. 19, 2019.
In the Game never materialized at the mall, and Liberty Center claims it is owed at least $855,641 in back rent and late fees, plus other damages. Family Entertainment Group could not be reached for comment.
Liberty Center General Manager John Taylor could not be reached for comment on the new lawsuit but previously told the Journal-News the pandemic delayed In the Game’s plans.
“Obviously they’ve been affected by everything as well,” he said at the time. “Their other locations are open so we’re working with them to set a new timeline for when they can start construction and when we can get them open. We expect it’ll be sometime next year.”
The entertainment center was supposed to offer food and “a creative adult drink menu,” and feature arcade gaming, six-lane boutique bowling, virtual reality, an axe-throwing arena and more.
The mall owners also sued the Moochie & Co. pet supplies store for $19,533 after they closed up shop in January 2018, the case settled after less than four months.
Like most brick and mortar retail outlets Liberty Center has struggled mightily throughout the pandemic and even before. The commissioners and Liberty Twp. trustees were working with Liberty Center’s new owners for months, trying to work out a deal that would bolster the finances of the center during these bleak retail times. Those talks ended last fall with no agreement.
Part of the negotiations included the county offering to pay the center $6.8 million over six years in lieu of mall owner Apollo seeking property value reductions. In the midst of the negotiations Liberty Center applied for two value reductions totaling $73 million, one of the mandated 2020 reevaluation and a second taking advantage of a new law that allows companies to seek relief based on the negative impacts of the coronavirus pandemic.
The huge development was built in a private/public partnership with Steiner + Associates, Butler County and Liberty Twp.
The Liberty Community Authority was formed to serve as a watchdog over the taxpayer investment in the development. The LCA is responsible for maintaining garages and storm water systems at the center and paying off the debt to build those.
To do so, it uses a facilities charge of one-half of one percent, which the public pays during each transaction at a Liberty Center business and a Core Retail Charge. It also uses a 10-mill assessed value charge levied against the properties on the site.
LCA President Phil Morrical said he is glad Apollo is trying to get dollars owed back.
“We applaud any action that the developers take to recover any revenue,” Morrical said. “Every bit of the revenues helps the LCA and helps the developers.”
There have been some issues with the bond payments in recent years for a variety reasons, necessitating “loans” from the county TIF. The LCA this week voted to refinance their bonds and restructured the Ohio Water Development Authority (OWDA) loan.
Financial Advisor Andy Brossart said the LCA will save about $340,000 annually by extending their bonds and cashing in on a lower interest rate and the county will save about $152,000 annually on the OWDA loan.
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