Middletown business won’t be
penalized for delays
Mike
Rutledge
Staff Writer
1:12
p.m Friday, Dec. 23, 2016 http://www.journal-news.com/community/middletown" rel="nofollow -
MIDDLETOWN
City Council,
frustrated by delays a micro-distillery had meeting contractually required
deadlines, voted to penalize the company $100 per month starting Jan. 1.
Initially,
the emergency legislation proposed by City Manager Doug Adkins failed on
Tuesday. But after the company’s owner pointed out the city had been the cause
of the delays, council reconsidered and approved the legislation as an
emergency measure, rather than letting the development agreement lapse.
Mike
Robinette, the owner of Liberty Spirits LLC, pointed out some of the slowness
in meeting those timelines was prompted by a lag by Middletown’s city administration in providing
the company a deed.
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That delay
stalled the company’s work on the property at 1316 Vail Ave., which Liberty
Spirits bought from the city for $1 http://www.journal-news.com/news/local/middletown-distillery-seeks-year-100-percent-tax-break/n1hH6RYyBL1FeoyxJtJX4H/" rel="nofollow - Upon hearing
city government had hindered progress on the work, council members reversed
themselves.
Adkins
initially recommended the council penalize Liberty Spirits for failing to have
the building on Vail ready for operations by Dec. 31, as had been specified
under an agreement with city government.
Adkins, who
early this year had been a strong proponent of the sale and abatement despite
concerns of some on the council, noted the building has been gutted, has a new
roof, new windows and a garage door, “but no way is it anywhere near to be ready
by Dec. 31.”
As was
allowed under the contract, Liberty Spirits has sought a deadline extension to
April 15. The company now expects to be open by mid-March.
Adkins
recommended that in exchange for granting the extension, the city penalize
Liberty Spirits at a rate of $100 per month, starting Jan. 1, from a $1,000
deposit the company made, with the remainder of the deposit defaulted if the
building isn’t open by April 15.
Mayor Larry
Mulligan Jr. noted that while Liberty Spirits failed to meet the deadline, it’s
important to be equitable and treat businesses equitably. Officials noted other
businesses also haven’t met their development-agreement deadlines.
Mulligan said
he thought $100 per month was reasonable.
Council
Member Steve Bohannon disagreed: “I think he should lose his $1,000,” he said,
with perhaps additional monthly penalties of $100 or $250.
Vice Mayor
Dora Bronston thought Robinette should be penalized either $250 per month from
the deposit or the entire $1,000.
Adkins and
Mulligan suggested Liberty Spirits, facing penalties, could say, “nevermind” to
the project.
“I think this
brings a good point, in the fact that we shouldn’t be owning real estate in the
city, because this puts us in a heck of a bind every time this comes about, so
we can help other people out,” Bohannon said. “We write contracts that we sat
down and agreed upon, for this contract to be written, and it seems to me like
it doesn’t mean anything….”
Adkins
responded that if the business opens 60 days late, the city nevertheless will
have a new company operating.
Council
Member Talbott Moon said he could agree with Bohannon’s and Bronston’s idea of
taking $250 per month from the deposit.
Robinette
said more than the money, he objected to the city singling him out when other
companies have missed deadlines.
“I feel like
I’m being singled out here, and I’ve invested a substantial amount of money in
this project downtown,” he said. “So if the intent is to try to extract a pound
of flesh out of me, you can do that. But if you want to get down to the
nit-picky aspects of the contract, which you seem to be interested in doing,
Mr. Bohannon, the contract says we would have had deed to the property by April
30. We didn’t get the deed until May 27” He later clarified the date was May
26.
The city took
weeks longer than promised to make the deed transfer happen under the early
March agreement, Robinette said: “The city hasn’t abided by the contract, in
terms of when we were supposed to get control of the project.”
Council voted
3-2 to penalize Liberty Spirits $100 per month, with Bohannon and Bronston
voting no.
Bronston
later voiced concern that the matter was a http://www.journal-news.com/news/local-govt--politics/middletown-city-manager-defends-need-work-speed-business/kGQnMzq83DRfL53Hn9nADI/" rel="nofollow - Council
Member Daniel Picard later offered to personally pay $1,000 on Liberty Spirits’
behalf.
“I’ll invest
my $1,000 in Liberty Spirits to move it forward,” he said.
Robinette
again told council the deed wasn’t delivered until May 26, and Bohannon
announced he would change his vote because of the delay.
Council then
voted 5-0 to approve the legislation, penalizing the company $100 per month.
“I apologize
to council for the confusion,” Adkins said after the vote.
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