Park City Film Studios developer sued by financial backer
A firm that provided more than $12 million in financial backing as Park City Film Studios was built filed a lawsuit in early July seeking control of the project, another twist written into the lengthening script of the Quinn’s Junction development.
The case, which was filed in 3rd District Court at Silver Summit, pits a firm called Quinn Capital Partners, LLC against Quinn’s Junction Properties, LC. Quinn Capital Partners is led by Gary Crandall, a developer who provided financial assistance to the project. Quinn’s Junction Properties is helmed by Greg Erickson, the developer of Park City Film Studios.
According to the lawsuit, construction was halted in the fall of 2014 as the Erickson-led firm "could not continue funding the construction." It says there had been defaults on construction payments and subcontractors recorded mechanic’s liens totaling more than $2 million.
Quinn’s Junction Properties approached Crandall "for the financial assistance needed to cure the defaults and revive the Film Studio project," the lawsuit says. An agreement was negotiated in October involving loans from Crandall and terms that included the conversion of the loans into equity in Quinn’s Junction Properties, it says. The agreement also involved a share of management, ownership and profit as well as an eventual 75 percent interest in the part of the property where commercial space would be built, according to the lawsuit. Quinn Capital Partners transferred funds topping $12.3 million as part of the relationship, the lawsuit says.
The lawsuit seeks a declaration that establishes the Quinn Capital Partners’ interest and that the firm is entitled to "control and possession of the Film Studio real property," among other requests.
There are no court dates scheduled.
Ericksen provided a prepared statement indicating there is disappointment with the lawsuit.
"PCFS is in the process of resolving differences with Gary Crandall. It is with some degree of disappointment that Mr. Crandall wants to publically assert one side of the discussions. PCFS feels that public comments of an advocate’s position is not an appropriate forum or productive. To my knowledge PCFS is current on all payments and obligations and has the ability to remain so without Mr. Crandall’s assistance. We have every intention of moving forward on this world class facility in a timely manner," the statement says.
Park City Film Studios is under construction at Quinn’s Junction. It was beset by delays and financing issues, culminating with the partnership involving the Crandall-led firm. That relationship was announced in October of 2014. In the weeks prior the partnership announcement, two firms involved in the construction filed liens against the property totaling nearly $2 million. Ericksen at the time referred to the Crandall side as a "financial partner/co-owner."
Ericksen on Tuesday said he anticipates Park City Film Studios will open by the end of July. "Blood & Oil", a new ABC television series, is scheduled to be produced at the facility.
The Park City Planning Commission on Wednesday approved a City Hall workforce or otherwise restricted housing development slated for the northern reaches of Old Town.