Académique Documents
Professionnel Documents
Culture Documents
Case No.
Hon.
Plaintiffs
vs.
BRIAN HOLDWICK, and DETROIT ECONOMIC
GROWTH CORPORATION, a Michigan Non-Profit
Corporation,
Defendants
15-008189-NO
FILED IN MY OFFICE
WAYNE COUNTY CLERK
6/22/2015 4:27:02 PM
CATHY M. GARRETT
/
Company with its principal place of business in Detroit, Michigan, and is the successor-ininterest to certain rights of Bagley Acquisition Corporation (hereafter, BAC), which was at all
relevant times, the owner of real property described as 220 Bagley (and until April 2014, was
also the owner of 139 Bagley), located in the City of Detroit, Wayne County, Michigan.
2.
Triple-A Venture, LLC and President of BAC. Pieroni was one of two shareholders in BAC, the
other being Michigan, Bagley, and Detroit, LLC (hereafter, MBD), which has assigned its
interest in this suit to Pieroni.
3.
Michigan Non-Profit Corporation with its principal place of business in Detroit, Michigan.
4.
Defendant Brian J. Holdwick was, at all relevant times, the Executive Vice-
6.
attorney fees.
FACTUAL ALLEGATIONS
7.
On or about March 24, 2014, the City of Detroit, Village Green Holdings,
Jonathan Holtzman (the Chief Executive Officer (and, upon information and belief, 50% owner)
of Village Green) and Defendant DEGC jointly announced an agreement to develop new
residential real-estate development (hereafter, the VG Development), to be located on a city
block on which the former Detroit Statler Hotel once stood (hereafter, the Statler Block),
bounded by Park Avenue to the east, Clifford Street to the west, Washington Boulevard to the
south, and Bagley Avenue to the north.
9.
Plans for the VG Development showed it occupying the entire Statler Block, all of
which (with the exception of the 139 Bagley property) was owned by the City of Detroit and
which the City and/or DEGC had agreed to sell to Village Green for $1.
10.
Significantly, the plan drawings also showed the development occupying the
property known as 139 Bagley, which was and is owned by Triple-A Venture, LLC, even though
nobody had notified or consulted with Triple-A before announcing the plan to build on its land.
11.
Friedman) made a proposal to Pieroni for the acquisition of the 139 Bagley property, but did not
state the purpose of the offer or Village Greens intended use of the property. It was not a goodfaith proposal.
12.
Subsequent negotiations broke down when Village Green offered $1 million and
Triple-A refused to accept less than $3 million. Holtzman intimated to Pieroni that he would get
the City to force Triple-A to tear down the 139 Bagley building at Triple-As expense.
13.
willingness to cooperate in the development of the VG Development or others proposed for the
Statler Block.
14.
Pieroni, Holdwick, and two others met at the DEGC offices on April 30, 2014.
They discussed the Village Green project and Pieroni advised Holdwick of his prior discussion
with Holtzman and again offered to cooperate if the compensation was satisfactory. Pieroni
stated that Holtzmans offer of $1 million for 139 Bagley was unacceptable and that Holtzman
had threatened to have the City compel Triple-A to demolish the five-story building on the 139
Bagley site.
15.
In response, Defendant Holdwick simply told Pieroni that Triple-As asking price
for the 139 Bagley property was too high and that he should accept Village Greens offer.
Holdwick then told Pieroni that if Triple-A did not accept Village Greens offer, the DEGC
would not extend ordinary benefits, credits, approvals, and licenses to the purchaser of the
Michigan Building, located at 220 Bagley and owned by BAC, Plaintiff Bagley Liquidations
predecessor-in-interest.
16.
Holdwick knew that Pieroni was contemporaneously attempting to sell the stock
of BAC, the sole asset of which was the Michigan Building, to a developer for conversion to
apartments, which was the only economically viable use for that property.
17.
The threat that the benefits, credits, approvals and licenses ordinarily extended by
the DEGC to purchasers of other commercial properties in the City of Detroit would not be
extended to the purchaser of the Michigan Building would have to be disclosed to any potential
purchaser of that property, and the unavailability of said benefits, credits, approvals, and licenses
would significantly reduce the value of the property.
18.
Pieroni and MBD ultimately sold their stock in BAC (the owner of the Michigan
After Holtzman threatened Pieroni and Triple-A, Pieroni conferred with the
DEGC, through its employee, Holdwick. However, Holdwick instead threatened Pieroni and
Bagley Liquidations predecessor-in-interest orally, stating that DEGC would withhold ordinary
benefits, credits, approvals, and licenses to any prospective purchaser of the Michigan Building
unless Triple-A agreed to sell the 139 Bagley property to Village Green for the price offered by
Village Green. This threat was made during the meeting on April 30, 2014, in front of two other
witnesses.
21.
At the time Holdwick made this threat, he knew that Pieroni was attempting to
sell the Michigan Building to a developer for conversion to apartments and that such a
development would not be economically feasible without the benefits, credits, approvals, and
licenses ordinarily extended by the DEGC.
22.
At the time Holdwick made this threat, he knew that converting the Michigan
Building to apartments was the highest and best use of the property. Conversely, he knew that
denying a prospective purchaser the ability to convert the Michigan Building to apartments
would significantly diminish the value of the property.
5
23.
Thus, Holdwicks threat caused injury to the property belonging to BAC, Bagley
Holdwick made the threat with the intent and purpose to compel Triple-A, against
its will, to sell the 139 Bagley property to Village Green for the amount offered by Village
Greena price that was far less than what Triple-A was otherwise willing to accept.
25.
STATE OF MICHIGAN
IN THE WAYNE COUNTY CIRCUIT COURT
TRIPLE-A VENTURE, LLC, a Michigan Limited
Liability Co, BAGLEY LIQUIDATION COMPANY,
LLC,a Michigan Limited Liability Company, and
ANTHONY V. PIERONI,
Case No.
Hon.
Plaintiffs
vs.
BRIAN HOLDWICK, DETROIT ECONOMIC
GROWTH CORPORATION, a Michigan Non-Profit
Corporation, JONATHAN HOLTZMAN, and VILLAGE
GREEN HOLDING, LLC, a Michigan Limited Liability
Company,
Defendants
/
DEMAND FOR JURY TRIAL
NOW COME the above-named Plaintiffs, by and through their attorneys,
CONSTITUTIONAL LITIGATION ASSOCIATES, P.C., and hereby demand a trial by jury in
the above-captioned matter.
Respectfully submitted,