JACKSON, MI – A new legal battle has emerged over the Hayes Hotel redevelopment in Jackson.
Ohio-based developers Collier Gibson filed the lawsuit against J. Jeffers & Co. in Jackson County Circuit Court on July 3. The company 228 Michigan Ave., LLC, where Collier Gibson is located, was also listed in the lawsuit.
The filing alleges that J. Jeffers & Co. recorded a claim of interest on the property with the Jackson County Register of Deeds on Feb. 27. That means Collier Gibson alleges J. Jeffers & Co. has an interest in acquiring the property, though claims the defendant has no “right, title or interest” in it.
Collier Gibson gained ownership of the property on March 4 and has since asked J. Jeffers & Co. to remove its claim, the lawsuit read. The developer didn’t receive a response, and is now resolving this through litigation, Collier Gibson’s attorney Roger Myers of Myers & Myers said.
On March 24, the Jackson County Circuit Judge Richard LaFlamme dismissed earlier claims by J. Jeffers & Co. that the city violated a sale agreement and misled the company. Myers said J. Jeffers & Co. should have removed the claim of interest then.
“I’m sure it’s to try to get some sort of leverage to further pursue their interest in this property, but they’re doing so through illegal means,” Myers said. “They can’t just have this claim of interest cloud on (the) title to the property that my client owns.”
The lawsuit claims J. Jeffers & Co. did this maliciously and had an ulterior motive to extract a favorable settlement with the city. Myers said if the claim does not get discharged soon, this challenge to who owns the property, or “cloud on title,” could cause problems for getting approved for financing, sales and other future development plans.
Collier Gibson is requesting the judge to void the claim of interest, and recovery of all attorney fees and costs.
J. Jeffers & Co.’s Chief Development Officer Brian Loftin did not respond to request for comment.
After an agreement with J. Jeffers & Co. was extended twice without a sale by Dec. 31, 2024, the city council sold the building to Collier Gibson for $25,000. The proposed $40 million project aims to create 109 market-rate apartments, a restaurant and retail space.
J. Jeffers & Co. had planned a $40 million project to transform the 10-floor building, named The Hayes, into apartments, event, retail and restaurant space. The dismissed lawsuit claimed the company had already invested nearly $2 million into the project.
The hotel originally opened in November 1926 and had been vacant since 2003. For the past 20 years, the city has invested $1.5 million to preserve the building for future development.
Over the years, several past deals with potential developers have fallen through.
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