Luke Liakos, the president of Helios, owned the popular dance club that closed in January after a financial dispute with the building’s owner.
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Helios claims its 2014 contract with CityWide, under the name Dayton Progressive Developments LLC, gives the company the right to possess, operate, use and generate revenue from the parking lot at East Second and North St. Clair streets.
Under an operation and use agreement, Helios assigned its right to acquire the parking lot to CityWide but still had the right to use and operate the property.
The agreement says if CityWide does not develop the property and decides to sell it, Helios would have the option to buy it at fair market value.
Helios says it exercised its option, and its appraiser estimated the property’s fair market value to be $480,000.
The company’s complaint claims CityWide’s appraiser put the fair market value at more than $2 million and the group has refused to get a third appraisal, as required under the contract.
Helios says CityWide breached the contract by entering into a lease agreement with CareSource, giving the organization exclusive rights for its employees to park at the lot from 6 a.m. to 6 p.m. Monday to Friday for below market fees.
Helios says it has received none of those fees and asked the court to block CareSource from using the lot, which CityWide transferred to the city of Dayton last month.
Helios claims it must be paid $700,000 to terminate its rights under the contract, if it is not sold the property at fair market value.
In a counterclaim court filing, the city of Dayton said Helios failed its contractual responsibility to maintain and provide security for the property until it was needed for development.
Helios also breached its agreement by failing to pay operational expenses and real estate taxes, while CityWide had to spend $400,000 on real estate taxes, the city’s counterclaim states.
In a filing, CareSource said it has not breached any contracts and it should be dismissed from the lawsuit because there are no claims against it.
The city and CityWide declined to comment on pending litigation. An attorney for Helios did not return requests for comment.
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