Lawsuit Filed To Keep Tax Money From Going To Toyota Music Factory Developer
IRVING (CBSDFW.COM) - A newly formed taxpayer group has filed a lawsuit to block the city of Irving from giving tens of millions of dollars to the developer of the Toyota Music Factory entertainment complex.
The suit, filed Wednesday morning by the group Irving Taxpayers Matter, seeks to prevent the city from transferring to the Ark Group of North Carolina $44 million in taxes collected for this specific project, called a TIF, or tax incremental funding.
The lawsuit against the city claims in order to meet deadlines to obtain the money, "...Ark has defrauded the taxpayers of the city of Irving by installing substandard toilets, sinks, counters, and other fixtures in order to obtain approvals from the city and certificates of occupancy, and then ripping the fixtures out..."
The group's attorney, Larry Friedman said, "If they can't stay on schedule, which they didn't, and if they didn't build it properly, they didn't qualify for the money, and the taxpayers are concerned that Ark didn't qualify for the money."
The lawsuit also claims Ark didn't build enough parking for events, didn't build the plaza as big, and didn't cover the plaza as promised.
Records from the Texas Secretary of State's Office show the three taxpayers in the group, John Chris Allen, Shawn Brookshire, and William Brown III, filed paperwork last week on the same day Billy Bob Barnett suddenly closed Big Beat Dallas, which includes his five restaurants at the Music Factory.
Friedman says that's just a coincidence.
He represents both Barnett and the taxpayers group.
In a statement released late Wednesday afternoon, Noah Lazes of the Ark Group said, "The plaza and all the work at the entertainment center has been approved by the city of Irving and is in full compliance with our city agreements. We adamantly deny the far-fetched allegations by Billy Barnett's group..."
The nearly $166 million project is owned by the city of Irving.
Assuming the Ark Group receives the TIF money, taxpayers will spend just over $80 million on the entertainment center. The rest will be paid for by the Ark Group.
The $44 million in TIF money came up during a regularly scheduled city council workshop Wednesday afternoon.
The city of Irving's Chief Financial Officer, Jeff Litchfield, told council members, "The TIF reimbursement has not been paid, that the company must comply with all requirements of the TIF agreement prior to being eligible to receive that payment."
In a statement, the city said, "While the city of Irving is aware of the lawsuit filed today by Irving Taxpayers Matter against the City regarding the Toyota Music Factory Project, the city has not yet been served with the lawsuit, so it is unable to comment on the litigation at this time..."
Both the city and Ark say the concert Pavilion, movie theater, and 14 remaining restaurants continue to be crowded. The Ark Group says it should complete the project in the next week or so.
The city says that's when it should be eligible to receive the tax money.
But Friedman says the taxpayers filing suit wanted to act quickly. "The taxpayers believe once the money is transferred to Ark, they will never see that money again. If the city under these circumstances releases that $44 million to Ark, my clients believe that it would be irresponsible."
