MGPI of Indiana, LLC v. City of Williamstown, KY

CourtDistrict Court, E.D. Kentucky
DecidedJune 30, 2025
Docket2:24-cv-00023
StatusUnknown

This text of MGPI of Indiana, LLC v. City of Williamstown, KY (MGPI of Indiana, LLC v. City of Williamstown, KY) is published on Counsel Stack Legal Research, covering District Court, E.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MGPI of Indiana, LLC v. City of Williamstown, KY, (E.D. Ky. 2025).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF KENTUCKY NORTHERN DIVISION AT COVINGTON

CIVIL CASE NO. 24-23-DLB-CJS

MGPI of INDIANA, LLC PLAINTIFF

v. MEMORANDUM OPINION AND ORDER

CITY OF WILLIAMSTOWN, KY, et al. DEFENDANTS

* * * * * * * * * * * * * * * * I. INTRODUCTION This matter is before the Court on Defendant, the City of Williamstown (the “City”)’s Motion for Partial Judgment on the Pleadings. (Doc. # 71). Plaintiff, MGPI of Indiana, LLC (“MGPI”) having filed its Response (Doc. # 73), and Defendant having filed its Reply (Doc. # 75), this Motion is now ripe for the Court’s consideration. For the following reasons the City’s Motion is granted. II. FACTUAL AND PROCEDURAL BACKGROUND MGPI is a producer of distilled spirits, branded spirits products, and specialty food ingredients. (Doc. # 44 ¶ 13). MGPI has five existing distilled spirits warehouse facilities in Williamstown, Kentucky. (Id.). This case concerns MGPI’s negotiations with the City of Williamstown to build up to six additional warehouse facilities to be used for storing and aging bourbon. (Id. ¶ 14). Given the voluminous facts in this case, the Court will recount only those necessary to the adjudication of the instant Motion. On August 1, 2023, MGPI and the City began negotiations regarding MGPI’s expansion in the City (the “Project”). (Id.). Prior to these negotiations, the approximately 120 acres that were to be allocated for the Project (the “Project Site”) had been rezoned to Industrial-One (“I-1”) pursuant to Ordinance 2021-14 passed on November 19, 2021. (Id. ¶ 15). On September 29, 2019, prior to being elected Mayor of Williamstown, Mark Christopher objected to this rezoning. (Id. ¶ 16). The City proceeded with the rezoning anyway. (Id.).

On September 19, 2023, MGPI met with now Mayor Christopher and the City Council to discuss the Project and its financing. (Id. ¶ 17). A portion of the costs of the Project were to be financed by proceeds from industrial revenue bonds (the “Bonds”) issued by the City. (Id.). Three days later, on September 22, 2023, Mayor Christopher sent MGPI a letter stating that the City Council had accepted and agreed to the construction of a water tower, a waterline extension, and issuance of the Bonds. (Doc. # 44-3). Mayor Christopher represented to MGPI that the City of Williamstown had “made a commitment to partner with MPG Ingredients, Inc. [sic], pertaining to [its] proposal, [its] donation, and further expansion of Conrad Lane.” (Doc. # 44 ¶ 17.).

On October 2, 2023, the City Council conducted its first reading for Ordinance 2023-14, which would authorize issuance of the Bonds, along with approval and authorization of the execution and delivery of: (A) a Lease Agreement between the City of Williamstown, as Lessor, and MGPI, as Lessee, for the Project, with the rental payments to be made by MGPI thereunder pledged to repay the Bonds, (B) a Bond Purchase Agreement providing for the issuance, sale, and delivery of the Bonds to finance the costs of the Project and providing for their negotiated sale, (C) a Water Services Support Agreement relating to municipal water service to the Project, and (D) other related Documents; and other related actions.

(Id. at ¶ 19). On October 17, 2023, the City Council conducted a second reading and voted to approve Ordinance 2023-14, along with the lease agreement, bond purchase agreement, and water services support agreement. (Id. ¶¶ 21-22). On the same date, Mayor Christopher signed the Ordinance and executed the Water Services Support Agreement. (Id. ¶ 24). The Water Services Support Agreement stated the City had “adopted a Bond-

authorizing Ordinance” and included promises by the City to issue the bonds “for the benefit of the Company [MGPI], . . . to finance the acquisition, construction and installation of the Project, to acquire title to the Project and to lease said Project back to the Company.” (Id. ¶ 26) (quoting Doc. # 44-5). MGPI alleges that “[a]cting in reliance on the Defendants’ promises that became legally binding through the City Council’s passing of Ordinance 2023-14 and through the Water Services Support Agreement, MGPI entered into a purchase agreement for the Property to purchase the Property for $2,800,000.” (Doc. # 44 ¶ 30). MGPI alleges closing has been delayed due to the alleged actions of the Defendants. (Id.). MGPI also

alleges it incurred other substantial costs associated with the Project in reliance on Defendants’ promises that “became legally binding through the City Council’s passing of Ordinance 2023-14 and through the Water Services Support Agreement.” (Id. ¶ 31). On October 23, 2023, in accordance with these agreements, the Grant County Planning Commission (“Planning Commission”) approved a grading plan for two of MGPI’s buildings on the Project Site. (Id. ¶ 32). Then, allegedly for the first time, “Mayor Christopher read a prepared letter into the record, at the November 6, 2023 Williamstown City Council Meeting, indicating that he wanted the City Council to reconsider its decision to approve and support the MGPI Project.” (Id. ¶ 33). The next day, Mayor Christopher sent MGPI a letter stating he would be “issuing a stop work order on the proposed project area” effective November 10, 2023. (Id. ¶ 34). On November 9, 2023, Mayor Christopher executed the Stop Work Order. (Id. ¶ 35). On November 30, 2023, MGPI executed the Lease Agreement, Bond Purchase Agreement, and Request for Advance of Bond Proceeds and Construction Fund

Requisition called for in Ordinance 2023-14. (Id. ¶¶ 36-37). MGPI alleges that “to date, Mayor Christopher has refused to execute [these documents] as ‘authorized, empowered, and directed’ by Ordinance 2023-14.” (Id.). On December 4, 2023, the City Council held a meeting in which Mayor Christopher opened the floor to public comment regarding the Project. (Id. ¶ 38). At that meeting, City Attorney Jeff Shipp gave the first reading of Ordinance 2023-15, which purported to repeal Ordinance 2023-14. (Id.). On December 19, 2023, the City Council held a Special Meeting, at which MGPI could directly answer questions regarding the Project. (Id. ¶ 39). Mayor Christopher then directed City Attorney Shipp to provide a second reading of

Ordinance 2023-15. (Id.). Shipp allegedly refused and “stated on the record that he considered Ordinance 2023-15 to violate state and federal law.” (Id.). Then, although “Shipp informed Mayor Christopher that the procedural rules of the City Council allow either the Clerk or the Mayor to conduct the second reading” Mayor Christopher allegedly told Shipp “to read the Ordinance or leave the meeting.” (Id.). Shipp left the meeting and Mayor Christopher allegedly adjourned the meeting due to the lack of present legal counsel. (Id.). Thereafter, Mayor Christopher wrote a letter to the Planning Commission and the Grant County Building Inspector requesting the relevant permitting be postponed until it obtained new legal counsel. (Id. ¶ 42). Once new legal counsel was hired, the City Council conducted a second reading of Ordinance 2023-15. The Ordinance was adopted, with Mayor Christopher casting the tie breaking vote. (Id. ¶ 47). On January 19, 2024, Mayor Christopher sent a letter to the Planning Commission requesting that it table the review of all permits related to the Project. (Id. ¶ 48). On January 22, 2024, the Planning Commission voted to table the

review of permits or plans of the Project in accordance with the letter. (Id. ¶ 49). On February 12, 2024, MGPI filed this action. (Doc. # 1). Later, on April 15, 2024, Plaintiff moved to amend its Complaint. (Doc. #39). Magistrate Judge Candace J. Smith granted the motion as a matter of right, and the First Amended Complaint was filed on May 2, 2024. (Docs. # 43 and 44).

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