BATTLE CREEK, MI (WKZO AM/FM) — A dispute is heating up between the owners of a hotel and a Calhoun County development agency.
The owners of McCalmy Plaza hotel are being sued by Battle Creek Unlimited, for failing to make upgrades to the building after being lent $3.5 million dollars.
The agency says that the owners were supposed to redevelop the property into a Hilton Double Tree location by October 2018 after securing funding from their Direct Investment Fund.
After filing in Calhoun County Circuit Court, the suit is requesting most of the money to be paid back, and if the owners fail to come through it’s asking for the property to be sold.
Battle Creek Unlimited is asking to be compensated by $3,279,500 dollars with daily interest on the loan during the period from October 1st, 2019 to the date of court judgement.
The suit names owner Neil Freeman, as well as FRA Investors LLC, ALF III Inc.,NDF Battle Creek LLC, and NDF McCalmy LLC in a complaint.
The Direct Investment Fund contains contributions from Battle Creek;s Economic Development Fund and the Downtown Development Authority’s Revolving Loan Fund.
