River Triangle issues in court again
The lawsuit also called for the company to pay whatever sums appear to be owed to the city after the financial audit is completed.
Sections of the court document also noted that the company could owe up to $8.4 million to the city from a Urban Action Development Grant, a Section 108 loan from the U.S. Department of Housing and Urban Development, and additional mortgage fees.
The document also specifically alleged that the RTC had not used its best efforts to lease space in the available buildings and denied leases for potential tenants in light of the fact that the city had agreed to pay loan payments to HUD if the company's cash flow was lower than their semi-annual payment amounts.
To date, the city has paid roughly $5 million for the majority of the RTC's payments through federal Community Development Block Grant funds.
Mark Simmons, a principal partner of the RTC, declined to comment on the matter because he said that had not yet seen the lawsuit and had no knowledge of its contents.