BREACH OF CONSTRUCTION AND FINANCING CONTRACT
St. Louis, MO – In a case involving an award that includes future State of Missouri Historical Tax Credits for the rehabilitation of two structures on the south side of St. Louis, a judge awarded $1.1 million for breach of a construction and financing contract.
The judgment follows a complex effort to finance the rehabilitation of two structures located at the intersection of Virginia and Cherokee Streets. Defendants’ counsel at one point also included defendant Richard Coffin who, according to his LinkedIn profile, was a Federal Prosecutor with the U.S. Department of Justice.
The case involved J and J Home Builders, Inc. d/b/a HomeSource v. Cherokee Villas, L.L.C. and was tried before Judge Robert Cohen. The plaintiff was represented by Brian Weinstock of Danna McKitrick, P.C.
J and J Home Builders, Inc. d/b/a HomeSource entered into a construction and financing agreement with Cherokee Villas, LLC with personal guarantees executed by Richard Coffin, Thomas Beck, Leigh Ann Verhelle and Rokas Varanavicius because capital was needed to complete the renovation to the parcels. J and J Home Builders, Inc. d/b/a HomeSource was to provide financing for the parcels and pay off pre-existing debt with Frontenac Bank. In addition to finding for the plaintiff for repayment of the principal and interest of the loan, the judgment included any future Missouri Historical Tax Credits for which the project may qualify as a key part of the original agreement. Plaintiffs estimate that the tax credits could range from zero to $150,000.
“We think that this is a fair judgment and breaks new ground in the area of tax credits being part of a case before they are awarded when predicated as part of the loan,” said Brian Weinstock an attorney with Danna McKitrick who represented J and J Home Builders, Inc. d/b/a HomeSource.
Plaintiff attempted to obtain Missouri historical tax credits, however some of the required paperwork was missing. Additionally, the defendants in the case delayed and refused to provide a release and assignment of the Missouri historical tax credit file held by the Missouri Department of Economic Development.
About Danna McKitrick, P.C.:Located in Clayton, Mo., Danna McKitrick, P.C. represents businesses (emerging to national), insurers, government-related entities, and individuals throughout the Bi-state St. Louis area and adjoining states. To supplement its local resources, the firm is a member of MSI Global Alliance – an international association of more than 250 member firms in 100 countries. The firm can be viewed on the Web at www.dannamckitrick.com.