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Third Lawsuit Filed Over Downtown Brewery Site

The former Jamestown Brewing Company is pictured in downtown Jamestown. A lawsuit tied to the project was filed last week in Chautauqua County Supreme Court. P-J file photo

One of the centerpieces of Jamestown’s west end redevelopment is once again the subject of a lawsuit.

Evans Bank has filed a motion for summary judgement in Chautauqua County Supreme Court asking for $744,556.72 from GPatti Inc. the bank says it is owed on a $1,382,360 loan.

The bank is asking for any and all documents related to New York Main Street grants, Community Development Block Grants, Jamestown Greenlining Program grants or Jamestown Facade Program grants that were used as security for the loan. Loan documents also say the loss, curtailment or impairment of any of the grant money would result in the default of the loan. Evans Bank is also asking for 2019 and 2020 business tax returns and profit and loss statements.

“Upon information and belief, GPatti Enterprises has misappropriated the grant funds by disposing of them without providing Evans Bank notice of receipt of the (grant) funds or otherwise receiving Evans Bank’s consent to dispose of the grant funds,” states the affadavit in support of the summary judgement by Gerald Nagle, a senior vice president with Evans Bank.

The Jamestown Brewing Company project cost $3.84 million, with $475,000 of that amount paid with a state Main Street Grant. The project also was to receive $830,000 from the state Downtown Revitalization Initiative’s $10 million award to Jamestown.

Friday’s lawsuit filing is the third court action tied to the former Jamestown Brewing Company project. The owners of Jamestown Brewing Company filed a lawsuit in 2019 against GPatti Inc. alleging the brewing company owners weren’t fully notified about environmental issues at the site of the W.T. Grant building that prompted months of delays opening the business. Jamestown Brewing’s owners asked for at least $1 million in damages as well as compensatory damages, interest, attorney’s fees and other costs, but much of that lawsuit was later dismissed.

Then, in 2020, GPatti Inc. filed eviction proceedings against Jamestown Brewing Company alleging thousands of dollars in unpaid rent and breach of contract. The judge ruled in favor of GPatti, and the site has been vacant since.

The downtown brewery officially closed it doors in 2020.

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