Sullivan withdraws offer to buy property

WAUSEON, Ohio - No deal, Scott Sullivan has told the City of Wauseon.

The Delta businessman, whose company submitted a plan to purchase a downtown city lot from Charles Bryan Jr. and build a restaurant, withdrew his offer Nov. 16, Assistant Law Director Tom McWatters said.

The Sullivan Group ended negotiations despite a proposal McWatters issued to both parties to encourage them to seal an agreement.

In a letter issued to Bryan's attorney and Sullivan, McWatters said, upon a guarantee by the Ohio Department of Development that it will reimburse $143,000 in state grant money the city paid Bryan in advance for construction costs, the city would release its interest in a $100,000 escrow account established as a condition of the development agreement between Bryan's company, Wauseon Downtown Development Corporation, and city administrators.

In return, the WDDC would enter into a purchase agreement with the Sullivan Group. The city would approve the Sullivan Group as the new development team and, most likely, secure the state's approval and a transfer of the grant money to the new project.

The letter stated, however, that McWatters could not guarantee the DOD's cooperation.

Citing Bryan's indictment for multiple charges of arson and insurance fraud, the DOD is withholding the city's reimbursement and further draws on the grant fund until a new development team for the property is in place.

McWatters said information contained in correspondence between the WDDC and the Sullivan Group shows "it's clearly evident that the $100,000 escrow account was clearly a concern for (Bryan)." He said that may have contributed to Bryan's reluctance to sell the Sullivan Group the property.

McWatters said he issued the proposal to both parties on Friday, Nov. 13. The following Monday he received a call from Sullivan informing him the offer to purchase was being pulled. Bryan's attorney, Sarah McHugh, e-mailed McWatters a message the same day saying Bryan agreed to the proposal.

However, McHugh's response arrived after Sullivan had talked to McWatters. McWatters said he left a message for Sullivan with news of Bryan's approval, but Sullivan has failed to return his call.

"It might have been a timely issue (for him), I'm not sure," McWatters said. "It was a good proposal in the sense that everybody was protected."

Neither Bryan nor McHugh returned calls for comment. Sullivan declined comment, telling the Expositor, "Right now, I don't have anything to say."

Meanwhile, the lot located at Fulton and Elm streets remains unattended with a building foundation completed and the beginnings of brick walls laid from Bryan's project. McWatters said there is concern that winter weather will further delay any development.

Frankly, the city is running out of time to allow the WDDC to transfer the property, he said. Unless a new development team is named before year's end the DOD will withdraw its grant assistance.

"The city is going to review possible avenues of recourse to make sure that we can pursue the city's interests in the grant's proceeds," McWatters said. "We're going to pursue this expeditiously. Our hope is that (Bryan) will renew discussions with the Sullivan Group ... but that will have to happen rather quickly."

(The Fulton County Expositor newspaper is a FOX Toledo News media partner)