Chicago firm mismanaged project before abandoning it, RiNo developer says
The RiNo Project Hurley Place Faces Legal Battle Over $10 Million Expenditure
The RiNo company Menalto Development is alleging that a Chicago firm, the John Buck Co., has spent over $10 million without commencing work on their project along Delgany Street. Menalto accuses the John Buck Co. of halting work and ceasing communication regarding the project.
In a countersuit filed on Feb. 24, Menalto stated, “Menalto is entitled to recover damages that the John Buck Co. has caused Menalto and the family legacy it entrusted to JBC.”
Founder Bernard Hurley has been accumulating 7 acres of land in what is now RiNo for more than three decades. He envisions transforming most of the land into Hurley Place, described in the lawsuit as “a premier commercial and residential destination” and a “legacy project for the Hurley family.”
Initially, for the first phase, Hurley partnered with the John Buck Co., which was the idea of the Buck Co.
According to Menalto’s countersuit, “The John Buck Company was eager to enter the Denver market but wanted a local partner.” John Buck personally approached Menalto and Mr. Hurley for developing Menalto’s property.
In 2020, the two parties established Hurley Place Partners I LLC. The company, with Buck Co. as the managing member, was supposed to purchase Hurley’s real estate for $21 million. However, Hurley claims the deal was never finalized.
This arrangement left Menalto with no control over the company’s affairs, Hurley mentioned.
Despite a promising start, the project encountered financial strains by 2023 due to market conditions. That year, the John Buck Co. ceased work without informing Menalto, leading to the project stalling.
Menalto alleges that Buck Co. spent approximately $10.6 million before commencing construction, significantly exceeding the project budget. The lack of communication and progress updates further strained the relationship between the two firms.
In October 2023, Buck Co. exercised a put right option, demanding Menalto to buy it out for twice the amount spent on the project, at least $18 million.
Menalto questioned the calculation of this figure and claims that their own offer was rejected without a counter. As a result, Menalto is now countersuing Buck Co. for breach of contract, breach of fiduciary duty, and bad faith dealing.
The legal battle has escalated, with both parties seeking damages. Menalto’s lawyers are Kyler Burgi and Amanda Haugland at Davis Graham, while Buck Co. is represented by John Wharton and Jon Geneus of Greenberg Traurig.
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