Midway Mall owners sued for contract breach

Companies created under Industrial Commercial Properties are suing other Midway Mall companies for using their owned property for purposes other than retail. The two Industrial Commercial Properties companies, Elyria Midway Mall LLC and Elyria 4000 Midway Mall LLC, filed a lawsuit March 10 against property owners Elyria Realty LLC, Stacey Granger of Grafton, Water Street Development LLC, KE Elyria LLC, Midway Nassim LLC and Midway CH LLC, according to the suit. The alleged use of property breaches a contract entered into in the end of 1990 with Elyria Joint Venture with the companies located at the Midway Mall, including Higbee Company, Sears Roebuck & Co. and the May Department Stores Company, now Macy’s Inc, the suit says. Elyria Realty, Midway CH and Nassim were listed as the companies that breached the contract agreement, with the lawsuit stating that the breach caused $25,000 worth of damage “and to be more fully determined at trial.” Granger owns Uncle Bo’s Slow-n-Low BBQ, KE Elyria owns the former Macy’s building, now Johnny K’s Powersports of Cleveland, and the Water Street Development owns a vacant parcel of land. Elyria Midway Mall LLC owns the former Sears building and Elyria 4000 owns the former Dillard’s. Elyria Realty, Midway CH and Nassim owns the bulk of the other mall property. The lawsuit also is calling for an easement, restriction and operating agreement to be terminated since Midway Mall and the surrounding area has changed so that the agreement is “now outmoded by the changes to industry and locale and no longer have substantial value.” Additionally, the lawsuit included a 2016 feasibility study from the city of Elyria on the Midway Mall, which stated “as a consequence of the leave-as-is approach to Midway Mall, the property will become blighted and less attractive to future development opportunities as additional retail space sits vacant.” Representatives from Blumbergexcelsior Corporate Services Inc. listed as the statutory agent for Elyria Realty, Midway Nassim and Midway CH, provided no comment. Charles Nemer, one of the attorneys for Elyria Midway Mall and Elyria 4000, could not be reached for comment.