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Candy shop sues over soured real estate deal in Lansing

| May 10, 2018 | business and commercial law |

A federal lawsuit claims that a real estate enterprise stalled its development operations at a commercial real estate location Lansing Township. Allegedly, the real estate company, which the lawsuit claims was “illegal and fraudulent,” delayed operations due to a conflict of interest.

Mimi’s Sweet Shop, the company that filed the lawsuit through the U.S. District Court for the Western District of Michigan, says that two individuals connected with Lansing Township’s Eastwood Downtown Development Authority delayed operations to give preferential treatment to other companies that were connected to them.

Mimi’s also named other defendants, including: Lansing Township, Eastwood LLC., Towneast LLC Parking and Townseast LLC. Towneast and Towneast Parking.

The primary issue in the suit relates to promises made to Mimi’s Sweet Shop relating to its lease of property at The Heights Shopping center. The defendant’s allegedly promised that The Heights would be fully leased by May 2016, which would have helped the sweet shop’s business. Nevertheless, the shopping center had not even reached 30 percent capacity by this time.

Mimi’s claims that the defendants made false promises about the ability to bring in more tenants so they could charge higher levels of rent to the tenants who came on board. When the defendants failed to deliver on their promises, Mimi’s says it lost its capacity to bring in more revenue.

Did you lose money on a real estate deal because the other party you were dealing with failed to deliver on its promises? You might want to investigate how your case might be viewed by a state or federal civil court.

Source: Lansing State Journal, “Lawsuit: ‘Conspiracy’ caused The Heights at Eastwood to flounder in Lansing Township,” Sarah Lehr, May 04, 2018