The future of the University Square is uncertain after three businesses filed lawsuits against MD University Square for not maintaining the building.
Plans for the property will be presented by potential buyers on March 8 to the county at a Delaware-Muncie Metropolitan Planning Commission meeting, said Gregg Donaldson, asset manager for Milhaus Development, which owns University Square.
Donaldson said he is unsure about what future plans for the space.
“I don’t know what the development is going to look like, or even if it is going to occur, there are so many hurdles that need to be gone through,” Donaldson said. “There’s always the hope of new development, but ... everybody’s got to be in support of everything. I think the community wants to see something happen there.”
The structural integrity of the building is in question, though. Three tenants have filed lawsuits within the last year.
MD University Square originally filed a complaint on April 23, 2012 against Oh Fusion Japanese Restaurant owner Danny Oh claiming he failed to pay rent, according to case documents.
According to the lease agreement, Oh agreed to pay $2,500 in rent on the first day of each month from October 2011 to May 2012, after paying nothing for the first three months of their contract.
Oh failed to make any payments and owed MD University Square $20,003.86, including $1,000 in late fees and $903.86 in interest, as of nine months before he was evicted, according to court documents.
Oh counter complained, claiming MD University Square failed to properly maintain the building, including the space’s roof, which had numerous cracks that allowed water and other debris to leak into the building.
As part of the settlement agreement, MD University Square took over the property and waived some of the money Oh owed them.
“Neither party admitted any fault as part of the agreement,” Thomas Malapit, attorney for MD University Square, said. “Even though most parties are ready to settle a case, most parties are not willing to admit that they made any mistakes or admit any fault or liability.”
Oh Fusion officially closed Jan. 15 as a part of the settlement agreement it reached with MD University Square.
Malapit said Oh does not currently owe MD University Square anything and the case will be officially closed as soon as everyone signs the dismissal documents.
Ronald Hassett, owner of Skin Deep Tattoo, filed a lawsuit on April 30, 2012, also claiming the roof leaked and the building wasn’t maintained.
MD University Square responded by filing for possession of property because Hassett’s first security deposit installment wasn’t paid by the time it was due.
“He had some water leaking into his place that he alleged caused some damage to some computer equipment,” Malapit said.
The complaint also said the City of Muncie had found the building “unsafe for occupation” three times.
“Any time you have a case like this, where there is a landlord-tenant situation, you kind of have differences of opinion that happen where who is responsible for maintenance and upkeep on a building,” Malapit said. “That’s generally what it was about.”
MD University Square filed to evict Hassett.
According to the default notice mailed to Hassett before the lawsuit, the lease said he was to pay the first $1,250 installment of the security deposit on Nov. 1, 2011. A stop was put on the check before it went through.
The letter warned Hassett that “failure to comply... will force the Landlord to begin the eviction process and seek possession of the space.” MD University Square sent another letter dated Feb. 17, 2012 that said Hassett had five days to vacate the property before “further action is taken.”
Malapit said there is still no agreement and a trial is set for April 25 between Hassett and MD University Square.
“We try to treat people as we want to be treated,” Donaldson said. “Everything is covered by legal contracts and sometimes people don’t follow those.”
The most recent lawsuit was filed on Feb. 6 by Melissa Bucur, owner of cardinal cupcakes and coneys. She filed a complaint against Donaldson and MD University Square.
Bucur alleged in her lawsuit that Donaldson “intentionally misplaced, lost, and/or destroyed checks... in attempt to have [Bucur] in default of contract.”
Bucur also listed upkeep problems similar to the other lawsuits, including cracks and openings in the ceiling and the water being shut off, and that Donaldson didn’t fulfill his promise of a redesigned exterior.
MD University Square has not yet responded to Bucur’s complaint.
Bucur, Oh and their attorney David Sneden said they have no comment at this time. The Daily News was unable to reach Hassett, who split from Sneden during the course of the lawsuit.
In a letter to Hassett dated Feb. 22, 2012, Sneden informed him of his intention to submit a Motion to Withdraw from the case and urged him to “consult other legal counsel.”
As for the fate of University Square as a whole, Donaldson said he will not know the plans until the meeting March 8 since the decision is up to the potential buyer and MD University Square.
Chris Ellison, owner of Cleo’s Bourbon Bar and Red Bird Tequila and Taco bar in the Village, said he has heard multiple rumors regarding University Square, including the possibility the building will be torn down in June.
Ellison has recently secured two new properties in the Village in case he needs to move his businesses.
“Our plan is to move out,” Ellison said. “The plan is to tear the whole block down, that’s supposedly what they filed. That’s what we were told, that the building was coming down potentially in June.”
He said if the right approvals aren’t cleared, the building could remain in the same state.
Donaldson said he is always looking for new tenants for the vacated properties, although they don’t have a specific person moving in because of “everything that is going on.”
Ellison said he would support the idea of changes to the University Square.
“I think it would really benefit the Village,” he said. “There are some issues with that building. It would be all new development coming in and I think it would be a really good fit for the Village.”
Whatever the decision is, Ellison said he will keep Cleo’s and Red Bird in the Village.
“If they don’t tear the building down we will stay in our current locations, it’s really up to M.D. University Square,” he said. “The ball is really in their court if they want us to stay there or move our location."
