Rock Ohio Caesars is moving forward with parking plans around the Stanley Block building. But companies tied to the casino joint venture are mired in a shareholder dispute over who owns the property and litigation over a parking-lot deal in the same block.
View full sizeRock Gaming and Caesars Entertainment Corp. are developing their plans for casino parking in downtown Cleveland around the Stanley Block building. A company tied to Rock Ohio Caesars owns a stake in the historic building and is involved in a shareholder dispute over who controls the property.CLEVELAND, Ohio -- As Rock Ohio Caesars cobbles together parking plans for its downtown Cleveland casino, the developer is still battling over the historic Stanley Block building and a parking lot on High Street.
Word that the casino developer hopes to buy a nearby garage from the city of Cleveland signals that Rock Gaming and Caesars Entertainment Corp. are moving forward with a parking scheme that omits the Stanley Block.
But companies linked to their Cleveland joint venture are mired in a shareholder dispute over who controls the building -- and other litigation that could affect what gets built near the city's Gateway North garage.
Renderings show that Rock Ohio Caesars plans to wrap the Stanley Block with a welcome center and valet-parking operation, cattycorner from the first phase of the Horseshoe Casino.
"We're just going to work around it," spokeswoman Jennifer Kulczycki said.
Companies tied to Rock Ohio Caesars have purchased most of the block bounded by Prospect Avenue and Ontario, High and East Second streets. One company -- 2115-2121 Ontario Building LLC -- bought a stake in Macron Investment Co., which owns the Stanley Block, and is suing its fellow shareholders.
Those other shareholders, members of the Maloof family, want to preserve the Stanley Block, a rare stone-faced building that found itself in the limelight after years of neglect.
"What we want is what's best for the city and this wonderful building," Teri Maloof Kratus, a Macron shareholder, said Wednesday.
Kratus declined to comment on the shareholder dispute, which centers on whether 2115-2121 Ontario Building owns 50 percent -- or fewer -- shares. In its lawsuit, the company claims it has a 50 percent stake.
"We're reviewing the complaint," said David Eisler, an attorney representing the family.
An attorney for 2115-2121 Ontario Building did not respond to a request for comment Wednesday.
In March, a city commission said that the Stanley Block should be designated as a landmark -- a protective label. Cleveland City Council has not taken up that recommendation. Heritage Ohio, a statewide revitalization group, recently named the building to its 2011 list of priorities.
Meanwhile, Rock Ohio Caesars has jumped into another dispute with members of the Maloof family.
View full sizeA rendering of a potential welcome center, valet parking and Gateway North garage, with the Stanley Block in the middle.In January, a company owned by the casino joint venture paid $1.5 million for a Maloof family parking lot on High Street.
George and Nora Maloof have filed a lawsuit asking for a reversal of the sale and alleging that USA Parking Systems Inc. exploited the couple's "confidential relationship" with Samir Haikal, a son-in-law who ran the family's parking lots, to get a deal on the property.
USA Parking, which acted as an agent for the casino, is disputing the couple's claims. And USA Parking Systems Prospect LLC -- the company owned by Rock Ohio Caesars -- claims that the lawsuit casts a cloud on the property's title and could hamper the casino's ability to get financing.
"If the valet parking drop-off facility cannot be constructed due to the inability to obtain a mortgage loan, the casino project will necessarily be smaller in scale and less profitable," attorneys for USA Parking Systems Prospect wrote in a March 29 filing.
USA Parking Systems Prospect is asking the court to uphold the sale. A hearing is set for next week.