a day ago
River Ridge business park, Louisville developer in dispute over terminated contract
River Ridge Commerce Center and Louisville-based developer Hollenbach-Oakley LLC are suing each other over a contract dispute with allegations of wrongful contract termination and self-dealing.
Hollenbach-Oakley inked a master development agreement with the River Ridge Development Authority, which manages the center, in 2019 to market 600 acres of the 6,000-acre business and office park in Jeffersonville, Indiana.
As the master developer of the 'River Ridge Gateway Office Campus' and the 'River Ridge Office Research Campus,' Hollenbach-Oakley exclusively marketed these parts of the park.
In April, the authority referred a medical business that was interested in building an ambulatory surgery center at River Ridge to Hollenbach-Oakley, per the development agreement.
The authority alleges, however, that Hollenbach-Oakley also marketed one of its own Louisville properties as well as two other sites to the prospective River Ridge client, leading the authority to terminate the development agreement in June over the 'self-dealing and disloyal' behavior, according to its lawsuit.
More: One of Louisville's tallest downtown towers is for sale. Here's everything we know
Greg Fifer, general counsel for River Ridge, said the incident created 'distrust' with the Hollenbach-Oakley team.
'We regret having to take the step to terminate, but the default created irreconcilable harm in the relationship and therefore we terminated the MDA,' he said in a statement.
On July 14, Hollenbach-Oakley filed a breach of contract suit in the U.S. District Court for the Southern District of Indiana. It alleged the authority 'abruptly and wrongfully' found the developer in default of its agreement and also failed to pay over $75,000 owed to the developer.
'The purported reasons put forth by Defendant RRDA as grounds for the purported termination were fully without merit, are purely pretextual, and were fully rebutted and refuted by H-O,' reads the suit.
In an exhibit filed as part of the authority's countersuit, attorney for Hollenbach-Oakley, Gregory Compton, said the developer provided the interested business client with 'significant information' concerning potential new construction at River Ridge — including an on-site meeting — along with information on existing medical office space in Jefferson County, as the client was interested in both.
More: After nearly 6 years, Greater Louisville Inc. CEO stepping down. Here's everything we know
The attorney said the developer's actions were 'above board and none have been to the detriment of (the authority).'
Then, on Aug. 13, the development authority filed a countersuit alleging breach of contract, among other claims against Hollenbach-Oakley. It seeks unspecified monetary damages.
An initial pretrial conference is set for Sept. 25.
Established in 1998, River Ridge is now home to over 80 companies including Amazon, Collins Aerospace, Meta, and PharmaCord, and employs more than 12,000 people onsite.
Hollenbach-Oakley, founded in 1996, has a long history of office, retail, manufacturing and business developments, including Oldham Reserve, Blankenbaker Station, and Lynn Family Stadium.
Reach growth and development reporter Matthew Glowicki at mglowicki@ or 502-582-4000.
This article originally appeared on Louisville Courier Journal: River Ridge business park, developer in dispute over terminated contract
Solve the daily Crossword
