Film Studios developer wants financial backer’s lawsuit dismissed
July 17, 2015
The developer of the Park City Film Studios on Thursday said in court filings a financial backer’s lawsuit seeking control of the property should be dismissed, arguing the lawsuit does not claim there is a dispute between the sides.
The filings were made in 3rd District Court at Silver Summit by a firm called Quinn’s Junction Properties. The firm is led by Greg Ericksen, the developer of the Park City Film Studios. The financial backer who brought the lawsuit is Gary Crandall. His firm is called Quinn Capital Partners.
The Crandall-led firm claims in the lawsuit it provided more than $12 million in financial backing to the Park City Film Studios, the Quinn’s Junction facility that is expected to open shortly. Quinn Capital Partners is seeking control of the property through the lawsuit.
The filings by the Ericksen firm said the other side "has not alleged the existence of a controversy or dispute between the parties." They also say the Crandall-led firm has not "identified any current default on the part" of Quinn’s Junction Properties. The filings say Crandall’s firm does not claim that it converted a financial note into equitable interest.
Quinn Capital Partners provided $12.3 million in financing as the project was built, resolving previous defaults at the site.
The Ericksen firm said in the filings the lawsuit does not allege that Quinn’s Junction Properties "has defaulted on the Note, and in fact QJP has not defaulted on the Note." It also says the Crandall firm had an option to convert the financing into interest in the development but needed to do so by April 1.
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Quinn’s Capital Partners does not "identify the date and circumstances upon which it elected to convert its loan proceeds into an equitable interest, and in fact (Quinn Capital Partners) did not elect to convert its loan proceeds into an equitable interest prior to April 1, 2015," it says.
The lawsuit "alleges nothing that can be construed as a presently existing controversy, dispute, disagreement, issue, ambiguity, or other problem . . . ," the filing says.
"The Complaint ultimately seeks nothing more than an advisory opinion as to what its rights would be were QJP to default," it says.
Park City Film Studios is under construction at Quinn’s Junction. It suffered through delays, but the developer said recently the facility is expected to open by the end of July. A new ABC television series, called "Blood & Oil," is scheduled to be produced at Park City Film Studios.
The partnership between the firms led by Ericksen and Crandall was announced in the fall of 2014. The announcement described the Crandall side as a "financial partner/co-owner." The partnership was created after a work stoppage at the site that was blamed on financial questions regarding future tenants.
Park City Film Studios is planned to anchor a 374,000-square-foot development. The overall project could include a hotel, entertainment center, international film school and digital media center, the developers have said.