City Defaults on $500,000 Commitment, Developer Says | Jackson Free Press | Jackson, MS

City Defaults on $500,000 Commitment, Developer Says

Developer Mike Peters filed a breach of contract complaint in Hinds County Circuit Court last March, claiming the city stiffed him out of $500,000 in public grants for the $7 million renovation of the Plaza Building. According to the suit, which was reported by The Clarion-Ledger this week, Peters approached the city's director of planning and Development Corinne Fox in 2004, under then-Mayor Harvey Johnson Jr. about contributing money to make the renovation affordable. Fox urged the city to approve the commitment and gave Peters the go-ahead to get started, explaining that the city had been planning to obtain a community development block grant to reimburse itself for the $500,000 pay-out.

A new administration rolled up in 2004, however. Mayor Frank Melton took office, followed by the departure of Fox and the similar departure of city grant-writers.

By the time the project was complete in 2006, Carl Allen, then-director of planning and development, explained in an August e-mail that the city had failed to secure the grant.

The suit claims that Peter's company had delayed filing the breach-of-contract suit after repeated promises that the city would stick to its commitment, but decided to file the complaint after the city council refused to address the issue during a Feb. 26, 2008, meeting.

Peters would not comment on the lawsuit, while the city said it would not comment on pending litigation.

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