COLDWATER, MI (WTVB) – The Coldwater City Council is scheduled to take action Monday night on rescinding a sales agreement for the former Lefty’s Lounge building at 10 South Monroe.
The Council approved agreements for the sale, development, and lease of the city owned property to Broadway Grille owner Scott Ladd in May of 2022.
The city acquired the building from the State of Michigan through the property tax foreclosure process for $23,500. As part of an economic development project, the property was rented to Ladd in 2019 so that he could renovate it into a new bar and/or bar and restaurant with up to two apartments on the second floor.
But the COVID-19 pandemic delayed the project. The City Council gave Ladd a two year extension in November of 2021 to submit an application to a State grant program and complete renovations to the building.
The agreements and ultimate closing on the property were contingent on Ladd getting a Community Revitalization grant from the Michigan Economic Development Corporation for the development of the building.
But a resolution that is on Monday’s City Council agenda states Ladd has not received the letter of intent from the M.E.D.C. for the grant. It goes on to say Ladd has concluded his intended project will not be financially viable and he now wishes to be released from the agreements.
The City would also agree to return Ladd’s $1,000 earnest money deposit that it received from him.
Lefty’s shut down in June 2016 as the owners blamed nearby construction for their decision to close.
Comments