May 10, 2006 By Amy Zalar 4 min read

The Fayette County Redevelopment Authority voted Tuesday to file a legal complaint against landlord J. David Ewing in response to Ewing breaking a verbal commitment to sell the building to the authority and instead agreeing to sell it to someone else. According to solicitor Herb Margolis, although Ewing had agreed to sell 45 and 49 East Main St. to the authority for $490,000 plus closing costs late last year, Ewing later agreed to sell the property to Stephanie Gentile, wife of attorney Charles C. Gentile, for $500,000.

Gentile’s law office was formerly located at 40 E. Main St., but the office relocated to 45 E. Main St. after 40 E. Main St. was purchased by Joseph A. Hardy III.

Margolis said although the authority had signed the sales agreement, it wasn’t legally binding because Ewing did not sign it. He said Ewing signed a five-year lease extension for the years 2006 through 2010 with the authority after agreeing to sell the building to Gentile.

Authority chairman Kenneth Finney said he couldn’t believe how the saga unfolded, considering the fact that Ewing was a former redevelopment authority member. “We all negotiated in good faith. When it didn’t go, we were in awe,” he said.

Paul Bortz Jr. said Ewing misled the authority into signing the lease agreement when Ewing already knew he was selling to someone else. “I don’t know how attractive the building would have been to Gentile if Ewing had not tricked us into a five year lease,” Bortz said.

In outlining the timeline, Margolis said he, along with everybody else at the authority believed the authority was buying the building when they voted on it at December’s board meeting.

Board member James S. Woleslagle, abstained at the time because Coldwell Banker, of which he is affiliated, negotiated the sale.

Margolis said when executive director Andrew French did not receive the sales agreement the authority had signed and sent to Ewing within a few days, French spoke to Ewing on the telephone and Ewing said he would “overnight” the agreement.

Instead, according to Margolis, French later received a letter stating the building was being sold to someone else. Margolis said he filed a “writ of summons” in Fayette County Court after the authority directed him to do so via telephone in executive session to stop the sale. He said he was recently ordered by the court to file a complaint within 20 days or the case will end.

Margolis said after discussions with the authority, the Gentiles and Ewing, the authority opted to not pursue litigation provided the five-year lease agreement includes a 90-day provision for the authority to end the lease. However, Margolis said Ewing’s attorney would not sign the settlement agreement because he did not like all the history included in it. Margolis said he included correspondence detailing how the deal had transpired.

Margolis said he has no problem taking all the history out of the settlement agreement, because he will put all that information in the complaint.

Woleslagle said the complaint must be filed or the case will end. He said it is important to put all the history in the complaint.

“We’re a public entity. The public needs to know the facts,” Woleslagle said.

Prior to the vote to file the complaint, Finney and Bortz said they were definitely in favor of moving forward with it. Bortz said he feels even more strongly in favor of the complaint considering he and the other authority members had to undergo depositions on Monday. Authority member Rob Sleighter said he feels the authority should continue what it has started. Sleighter said he believes it is vital that if the authority gives 90 days notice, they can then move.

The authority has been located at 45 East Main St. for 15 years. The lease extension the authority signed includes rates of $2,901.96 a month for 2006; $3,018.04 a month for 2007; $3,138.76 a month for 2008; $3,264.31 a month for 2009 and $4,394.88 per month for 2010.

Margolis said he doesn’t know what will happen next, adding that he thought the issue was resolved and he was surprised the settlement agreement wasn’t signed.

“I don’t know what Ewing intends to do,” Margolis said.