Federal judge dismisses lawsuit against Hoover District project owners
Judge Lioi retained jurisdiction in the case to enforce a settlement reached in January.
NORTH CANTON A federal lawsuit against the developers of the Hoover District project was dismissed this week.
Both parties asked Judge Sara Lioi of the United States District Court for the Northern District of Ohio to dismiss the case without prejudice. They also asked that the court retain jurisdiction to enforce the terms of a settlement agreement reached in January.
Lioi dismissed the case Tuesday.
Dismissing a case without prejudice means that the case could be re-filed in the future.
An affiliate of CMB Regional Centers filed the suit in late 2016. It named Maple Street Commerce, the owners of the Hoover District, as well as a group of individual investors.
CMB argued that Maple Street was in default of a $36 million loan by misusing federal EB-5 funds intended for the Hoover project.
Maple Street denied those claims or any wrongdoing.
Maple Street Commerce is a partnership that includes Industrial Realty Group. Christopher Semarjian and Stuart Lichter own Maple Street Commerce. IRG and Lichter also are involved in the Johnson Controls Hall of Fame Village project in Canton.
CMB is an investment firm that connects developers with EB-5 funding. The EB-5 Immigrant Investor Visa Program, administered by the U.S. Citizenship and Immigration Services, allows foreign investors to obtain a green card by investing in a U.S. business that will create or retain at least 10 jobs.
The parties reached a settlement agreement in January.
As part of the agreement, Maple Street and Lichter had 60 days to secure an unaffiliated commercial loan to pay for a portion of the settlement followed by an additional 90 days to close the loan and obtain the funds.
Maple Street bought the massive former headquarters of the Hoover Co. in 2007. It has since revamped much of the complex, turning it into office and industrial space.
But the 400,000 square-foot western portion of the campus, which faces Main Street across from North Canton City Hall, has remained empty.
In 2013, Maple Street announced a $50 million project to turn the factory into a mixed-use development with apartments, shops and restaurants. The project was originally supposed be completed in late 2015, but that date was pushed back to 2016, then 2017, and most recently to the end this year or early next year.
Lichter did not immediately return calls for comment Thursday.
Subscribe for News
This website is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities. Any such offer or solicitation will be made only by means of an investment's confidential Offering Memorandum and in accordance with the terms of all applicable securities and other laws. This website does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. EB5Projects.com LLC and its affiliates expressly disclaim any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained in the website, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting therefrom.