City accepts settlement over lawsuit
At Tuesday's special meeting, the council accepted a lump sum settlement of $10,000 from Ahmad Khalaf for back rent and unpaid sewer bills owed to the city.
Khalaf had leased the Golden Pancake building from the city for more than two years, first as Smiley's restaurant.The city filed the eviction lawsuit (defined by City Attorney Brian Konzen as a capable forcible entry detainer) in early October, seeking a judgement of a little more than $31,000.
Khalaf, through his attorney, asked the city to accept either a $15,000 settlement or the $10,000 settlement.
The council chose to settle on the lump sum because the $15,000 would have been paid back in monthly installments.
"We're happy that we got something out of this," Mayor Ed Hagnauer said. "It closes the door as far as the lawsuit, but opens another door because with or without the building the area there is viable for development."
The Golden Pancake restaurant, originally the International House of Pancakes under a different owner, closed shortly after the lawsuit was filed.
Prior to that, the city and Khalaf were at odds with each other over the condition of the building.
Khalaf contended that the city was responsible for repairing an aging, leaking roof and other needed repairs to the exterior of the building.
The city contended that the repairs were not the responsibility of the city as dictated in a lease agreement.
Granite City Economic Director Jon Ferry said recently that interest had been shown in the building and parking lot area, but discussions on each had been informal.
The building is located at Nameoki Road and Pontoon Road.
E-mail: mheil@yourjournal.com
