#MATTHEW BANKS OF JAMESTOWN SERIES#

GPatti in its statement said the construction delays encountered were not unusual on a project of that size, and noted that the project had involved renovations to the 50-year-plus-old building.

#MATTHEW BANKS OF JAMESTOWN SERIES#

was supposed to open in April 2018, but environmental delays with the project resulted in a series of setbacks. Developers Jon McClellan and Jon McClellan II filed a lawsuit in state Supreme Court in Erie County over construction delays that delayed opening the brewery for more than a year. Miller alleges the loan was then never converted from to permanent financing.Įvans’ lawsuit against Patti is the fourth to be filed in relation to the Jamestown Brewing project. Patti’s attorneys allege nine subcontractors asking for a total of $426,502.44 received less than they were asking for to settle the issue, but that the liens were eventually discharged. Per its terms, the note provides that, to convert from a construction loan to permanent financing, GPatti must provide ‘lien waivers for contractors/subcontractors as required by’ Evans.”Ī separate case, listing Evans Bank as the defendant, was filed in June 2020 in state Supreme Court in Mayville proposing to use $147,392.43 in remaining construction loan money to pay mechanic’s liens, and that once those mechanic’s liens were released Evans would convert the construction loan into permanent financing. “In addition, GPatti obtained a final certificate of occupancy and all other permits, licenses and approvals necessary for occupancy and use of the project. “Despite these delays, GPatti caused the Jamestown Brewery project to be fully completed, often by directly paying subcontractors (instead of paying SLR) to complete their work on the project,” Miller wrote. The unpaid contractors resulted in construction delays that helped keep the brewery from opening on time. When subcontractors weren’t paid, Miller wrote, subcontractors filed mechanic’s liens totaling $426,502.44 against Patti and the brewery owners. That led to problems, Miller wrote, because the bank did not require SLR to obtain interim lien waivers from subcontractors. The bank, Miller said, began reviewing and approving payments, which Miller said took control of the loan away from Patti.

Patti said the building loan agreement stated loan advances would be made from the bank into a project fund, and all advances would be deemed received by Patti.Īndrew Miller, Patti’s attorney from Webster Szanyi in Buffalo, said Evans Bank decided in November 2018 to pay SLR Contracting and Service Co., the general contractor in charge of the brewery’s construction, directly and take a more active role in project administration. That response alleges Patti shouldn’t be responsible for the entire loan amount because, Patti’s attorneys state, the bank didn’t give all of the loan proceeds to Patti and allegedly mishandled the construction loan money and that Evans Bank was the first party in the contract to breach the loan agreements. Roughly a month after the Evans Bank filing, Patti’s attorney filed a response on behalf of the Jamestown developer. representing Evans Bank, wrote in the lawsuit. “If the premises is sold at foreclosure for less than the amount due, based upon the judgement of foreclosure, Evans Bank be entitled to enter a monetary judgement against the borrower and guarantors for any such deficiency as this court may determine,” John A. The bank is also asking that other claims not be merged into its case but handled separately. Through May 9, that amount has grown to $1,549,287.17.Įvans’ claim asks the court to keep Patti, the IDA or any other defendants from making any claims to the property, that the building be sold as one parcel, that any money from a foreclosure sale be brought into court and a referee be appointed to pay the bank the money it is owed.

15, 2021, Evans Bank confirmed the loan was payable and demanded payment of $1,522,913.90. Evans Bank said the conditions weren’t met and the loan became payable on July 27, 2019. According to the loan documentation, Patti was only required to make interest payments on the loan until July 2019 or until the conversion conditions were met. Lillian Ney Renaissance Center into the Jamestown Brewing Company.

Patti has filed a counterclaim as part of his answer to Evans Bank’s filing asking the court for at least $2 million in damages.Īt issue is a $1.5 million construction loan signed in 2018 to convert the former Dr. Third St., Jamestown, to be sold so the bank can recoup the $1,522,913.90 it says it is owed. Patti and the Chautauqua County Industrial Development asking the state Supreme Court to allow the former Jamestown Brewing Company building at 119 W. In May, Evans Bank filed a lawsuit against GPatti Enterprises LLC, George A.

Matthew banks of jamestown