City of Prescott files suit in civil courtCity of Prescott filed suit against Royal Oaks Holding Company and Royal Oaks Realty Inc., both of Shoreview, Minn.
City of Prescott filed suit against Royal Oaks Holding Company and Royal Oaks Realty Inc., both of Shoreview, Minn.
According to the complaint, in September 2006 the city and Royal Oaks Holding entered into a development agreement whereby the company would build a planned-unit housing development of 235 dwellings.
Under the agreement, the company would reimburse the city for administrative costs, including a part of the salaries for city employees involved with the project, and for planning, engineering and inspection expenses. According to the complaint, Royal Oaks Holdings has not paid those costs and now owes $91,286.
The company was also to substantially complete construction by the end of 2011, but according to the complaint, the project hasn’t been completed and Royal Oaks Holding has deeded the property to Royal Oaks Realty.
The suit alleges breach of contract, unjust enrichment and fraudulent transfer. The city is asking Royal Oaks be ordered to pay the $91,286 plus interest and the quit claim deed be rescinded.