The City of Peoria and Mayor Jim Ardis are facing a lawsuit filed by the former developers of the Peoria Marriott Pere Marquette.
Gary Matthews and Monte Brennan filed the lawsuit last Thursday. Matthews and Brennan believe the city, including City Manager Patrick Urich, acted in “bad faith” when handling the hotel’s financial issues and they worked against them.
The lawsuit states there was a breach of contract against the city, which ultimately led to the hotel, Matthews and Brennan being forced into bankruptcy. They alleged they lost their developer’s fee interest in the hotel, which is valued at $9.3 million, and each of them lost their 5 percent share of the Hotel Pere Marquette LLC, valued at $1.4 million.
Since the City of Peoria will not be getting back any of the $7 million it loaned for the development of the hotel, the lawsuit claims taxpayers are burderned with paying it off.
Matthews and Brennan are looking to be jointly awarded the $9.3 million, the $1.4 million and any further relief the court deems equitable.
A federal judge granted approval of the sale of the hotel back in September 2018 to INDURE Build-to-Core.