Case Creek developer now asking for $13.2M in suit against airport


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Posted Online: Oct. 29, 2013, 6:22 pm
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By Dawn Neuses, dneuses@qconline.com
The developer who proposed a multi-phase development on airport property amended his lawsuit and claim for damages, now asking to be awarded more than $13.2 million.

According to an amended complaint filed Monday in Rock Island Circuit Court, RDC Case Creek Trails LLC alleges the Metropolitan Airport Authority of Rock Island County did not negotiate in good faith as required and violated a development agreement by failing to provide a lease.

Airport board attorney Roger Strandlund said early Tuesday evening he had not seen a copy of the amended complaint.

Case Creek Trails was proposed to include a hotel and conference center and mixed-use retail, office and aviation facilities on more than 80 acres of airport land. RDC, the airport and city of Moline entered into a development agreement in 2010 for the project.

The Quad City International Airport terminated RDC as the developer of Case Creek Trails on March 7, 2012, because the company had not secured financing.

The development agreement called for financing to be in place before the airport took any action. Court documents allege the airport knew the company needed a lease before it could get financing.

According to the amended complaint, a mortgage lender stated in November 2011 it would provide financing as soon as RDC provided it with lease agreements with the airport, but even knowing that, the airport "began stalling efforts with requests for more information from the plaintiff."

Court documents state the airport had to get FAA approvals for the development but never started the process. RDC hired consultants to prepare permit applications on behalf of the airport, the complaint states.

RDC hired an appraiser for the land after the airport "refused to provide plaintiff with a copy of any appraisal or other documentation upon which a FAA-approved lease could be based," according to court documents.

RDC got a written commitment from Hospitality Specialists to build a Courtyard by Marriott hotel and conference center once a lease was in place. RDC proceeded with plans for a wellness complex and office complex and secured tenants for both subject to lease agreements, according to court documents.

The developer spent more than $1.22 million on architects, engineers, environmental services, consulting, advertising and marketing, legal, construction and accounting, to keep the project moving forward while trying to work with the airport, the complaint states.

In addition to the money it spent, RDC is asking for "reasonably lost profits" exceeding $12 million and attorney costs.

RDC filed a lawsuit against the airport in November 2012, seeking more than $12 million in damages citing breach of the development agreement.

The airport authority filed a motion to dismiss the lawsuit a month later, alleging the developer failed to secure financing for the project, thereby negating the development contract.

In September, Rock Island Circuit Court Judge Lori Lefstein asked RDC to provide more specific information on the basis for the suit, including details about the developer's efforts to fulfill the contract and the airport's alleged lack of good faith.



















 



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  Today is Thursday, July 31, the 212th day of 2014. There are 153 days left in the year.

1864 -- 150 years ago: A corps of surgeons now occupies the new hospital quarters at the Garrison Hospital on the Rock Island Arsenal. A fence has been installed to enclose the prison hospital.
1889 -- 125 years ago: B. Winter has let a contract to Christ Schreiner for a two story brick building with a double store front on the south side of 3rd Avenue just west of 17th Street. The estimated cost was $4,500.
1914 -- 100 years ago: Germany sent simultaneous ultimatums to Russia and France, demanding that Russia suspend mobilization within 12 hours and demanding that France inform Germany within 18 hours. In the case of war between Germany and Russia, France would remain neutral.
1939 -- 75 years ago: Civil service offices at the post office and the Rock Island Arsenal were swamped as more than 700 youths sought 15 machinist apprenticeships at the Arsenal.
1964 -- 50 years ago: Last night, American Legion Post 246 in Moline figuratively handed over the trousers to a female ex-Marine and petticoat rule began. Olga Swanson, of Moline, was installed as the first woman commander of the post .
1989 -- 25 years ago: The Illinois Quad City Civic Center captured the excitement and interest of a convention of auditorium managers this weekend in Reno, Nev. Bill Adams, civic center authority chairman, said the 10,000-seat arena planned for downtown Moline has caught the eye of construction firms, suppliers, management teams and concession groups.








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