Hrezo v. City of Lawrenceburg

934 N.E.2d 1221, 2010 Ind. App. LEXIS 1806, 2010 WL 3797253
CourtIndiana Court of Appeals
DecidedSeptember 30, 2010
Docket15A01-0907-CV-338
StatusPublished
Cited by13 cases

This text of 934 N.E.2d 1221 (Hrezo v. City of Lawrenceburg) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hrezo v. City of Lawrenceburg, 934 N.E.2d 1221, 2010 Ind. App. LEXIS 1806, 2010 WL 3797253 (Ind. Ct. App. 2010).

Opinion

OPINION

BROWN, Judge.

Robert Hrezo, Hrezo Engineering, Inc., and East High Street Properties LLC (collectively, "Hrezo") appeal the trial court's grant of partial summary judgment in favor of the City of Lawrenceburg and the Lawrenceburg Redevelopment Commission ' 1 ' ("LRC," and collectively, the "City"). Hrezo raises two issues, which we consolidate and restate as whether the trial court erred in granting the City's motion for partial summary judgment regarding Hrezo's breach of contract claim.

On eross appeal, the City raises two issues, which we revise and restate as:

II. Whether the trial court erred in denying the City's motion for summary judgment regarding Hrezo's claim of promissory estoppel; 2 and
Whether the trial court erred by denying the City's motion for a bench trial 3 IIL.

We affirm in part and reverse in part.

The relevant facts as designated by the parties follow. On April 11, 2003, Hrezo sent a letter and proposal to Tom Steidel, the City Manager for the City, in which Hrezo formally proposed to purchase and *1224 redevelop the McCullough Drug Company Building (the "MeCullough Building") "with the intention of assisting the community of Lawrenceburg with the Riverfront revitalization effort in accordance with the guidelines defined by the Historic Landmarks Foundation of Indiana consent agreement." Appellants' Appendix at 76. Hrezo's proposal was submitted to the City, and on May 19, 20083, the City passed Resolution 6-2003, which stated:

WHEREAS, Hrezo Engineering has approached the City with an offer to purchase the building commonly known as the MeCullock [sic] Drugstore Building on High Street in Lawrenceburg, Indiana for Fifty Thousand Dollars ($50,000.00) with plans to upgrade and completely rehabilitate the distressed structure and create four loft apartments, four office suites, and a first-floor commercial area with a parking lot in the rear of the building.
WHEREAS, Hrezo Engineering is seeking a loan from the Lawrenceburg Bond Bank in the amount of Five Hundred Fifty Thousand Dollars ($550,-000.00) short-term loan to upgrade and refurbish the structure with the design and plans all in satisfaction of HLFI requirements.
WHEREAS, the purpose of this project fits with the general redevelopment plan of downtown Lawrenceburg and will be a benefit to the citizens of Law-renceburg.
NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF L&AWRENCE-BURG, INDIANA, THAT:
The City Council is in approval of the basic terms of this project and requests that the matter be turned over to the Lawrenceburg Bond Bank to further develop the specific requirements of the plan.

Id. at 97. On August 4, 2003, the council passed Resolution 15-2003, which contained identical language except that the Resolution added the following as a second paragraph: "WHEREAS, Hrezo Engineering also offers to purchase the building on the corner of Short and High Streets currently being used by RSVP for the sum of $50,000." Id. at 158. Thus, the RSVP Building was added to the overall development proposal.

Upon the approval of the resolutions, Hrezo and the City, through Steidel, began to negotiate a "Development Agreement" which contained a provision stating that it would embody "the entire agreement and understanding of the parties ... and supersede [] all prior agreements, correspondence, arrangements and understandings relating to the subject matter hereof." 4 Id. at 255; see also id. at 166. *1225 Over the course of the negotiations, the parties disagreed over who should bear the cost of replacing the roof on the McCullough Building. Hrezo pointed to a Third Amended Consent Judgment between the Historical Landmarks Foundation of Indiana (HLFI") and the City, dated August 21, 2002, which required that "[wlithin 90 days after the rear wall has been reconstructed, the City shall cause a new roof to be installed on the [MeCul-lough Building], at the City's expense." 5 Id. at 177. After the rear wall was completed, however, the City did not construct the new roof. Id. at 184.

Hrezo's position, citing the Third Amended Consent Judgment and the proposal that it had submitted to Steidel and the City, was that Hrezo would pay "the difference in cost between installing a new roof on the McCullough Building using shingles and installing a new roof on the McCullough Building using a metal roof." Id. at 187. The City, on the other hand, wanted Hrezo to bear some of the cost in the roof's repairs irrespective of the upgrade. 6 Hrezo and the City also disagreed about inserting a "prevailing wage" clause into the Development Agreement per the Mayor's request. Id. at 99, 292.

In December 2004, Robert Hrezo and his son and employee Mike Hrezo met with city officials Mayor Cunningham, City Attorney Joseph Votaw, and Steidel. An updated version of Hrezo's development plan involving multiple properties including the "McCullough Drug Building, RSVP Building, the Hoerst Building, and a vacant lot" was discussed. Id. at 198. Af-terwards, Steidel sent a draft of an agreement to Hrezo which, according to Hrezo, "was not consistent with what had been agreed to at the meeting in December, 2004." Id. at 194. Hrezo then informed the Mayor that it "was now going to return to the original plan of redeveloping the McCullough Building. ..." Id.

A Development Agreement was never signed by Hrezo and the City. Also, Hrezo did not provide the Bond Bank with all of the "necessary financial information" which was needed "in order to process the loan he requested for redevelopment." 7 *1226 Id. at 108. On July 11, 2005, the LRC held a meeting in which Hrezo was not present and discussed, among other matters, the Hrezo development project. At the meeting, Votaw noted that "[the May- or gave [Hrezo] 11 (eleven) days-if no reply Mayor will give Mr. Steidel the go ahead to sell the buildings." Id. at 262. Steidel stated that Hrezo "keeps changing his deals" Id. Another member of the LRC, Tom Rogers, stated that Hrezo "is not doing things positive and he should be here getting things done." Id. Steidel advocated putting the McCullough building "back on the market." Id. at 268.

On July 27, 2005, "as a result of the 11 day deadline expiring," the LRC held a "work session" to discuss the Hrezo project. Id. at 292. At the meeting, the LRC discussed its frustrations with Hrezo and the fact that the project had been held up for two years. Robert Hrezo explained to the LRC that he believed that the problem was the "City manager and the agreement," and that Hrezo had "asked for the matter to be turned over to the city attorney and it was in February he began working with [Hrezo]." Id. at 146. Votaw stated in clarifying the issue that:

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934 N.E.2d 1221, 2010 Ind. App. LEXIS 1806, 2010 WL 3797253, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hrezo-v-city-of-lawrenceburg-indctapp-2010.