Prior to commencement of this suit, Kunkel Group, Inc. recognized that its loan was approaching the end of itsterm. Kunkel Group, Inc. did reach out to the Redevelopment Commission, by and through its Executive Director, Phillip Hooper, to discuss working on a plan to renew the loan and bring a grocery downtown. Kunkel Group, Inc. had hoped that the City’s Redevelopment Commission would continue the dialogue with Kunkel Group, Inc. on this issue, but unfortunately has now filed suit. Thus, Kunkel Group, Inc.’s efforts will now be directed toward obtaining funding or financing to pay off the loan balance. The Meridian Plaza Building is a real asset to the Downtown area, and Kunkel Group, Inc. is optimistic that it will obtain the necessary funding/financing.
In its suit, the City has made allegations of fraud. Kunkel Group, Inc. unequivocally denies these allegations. In this regard, Kunkel Group, Inc. would point out that the City’s allegations of fraud are premised entirely upon legal instruments that were prepared in their entirety by the City. In the almost eight (8) years that have passed since the subject transaction, the City has never raised any issue regarding the legal instruments that it prepared. Had any issue with the documents prepared by the City been earlier brought to the attention of Kunkel Group, Inc., those issue might have been capable of being resolved years ago. The allegations in the suit filed yesterday is Kunkel Group, Inc.’s first notice from the City that there is any issue with the legal documents that the City prepared. As the subject transaction occurred almost eight (8) years ago, Kunkel Group, Inc. will now have tofurther investigate the circumstances regarding the timing, execution and recording of the documents.
As this matter is now in litigation, Kunkel Group, Inc. will have no further comment at this time on the allegations in the complaint.
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