Tuesday, October 25, 2022

Jackson: Greyhound Skipped Out on Rent

 Greyhound may be gone but is not forgotten as it apparently left behind some unpaid rent at Union Station.  The Jackson Redevelopment Authority sued Greyhound and its parent company, Flix North for over $600,000 in unpaid rent and other damages in U.S. District Court today. 

 

JRA owns Union Station on West Capitiol Street.   Greyhound began leasing space for its bus terminal at Union Station in 2003. The company agreed to pay $50,000 per year for the first five years and $75,000 for the second five years. Greyhound agreed to pay rent that was "150% of the rent previously due during the final five years of the lease term" ($112,500 per year).  

However, Greyhound withheld rent from JRA as it claimed it had a right to offset.  Greyhound apparently was forced to spend money on the facilities.  JRA claims it investigated but the company refused to provide documentation of its claims. A frustrated JRA hired the Jones Walker law firm to collect $815,625 from Greyhound. 

Jones Walker notified Greyhound in a March 4, 2020 letter the lease would be terminated within 30 days.  The bus company came to the table and paid $189,000 under protest.  JRA accepted the payment but maintained Greyhound still owed $796,725.  However, JRA allowed Greyhound to remain at Union Station. 

The two parties continued to squabble over who owed what until Greyhound provided documentation of its claims on October 10, 2022.  JRA claims Greyhound's documentation is "incomplete" and the company still owed a substantial portion of the unpaid rent.  


 

JRA sent a second notice of termination on August 25, 2022 and gave it thirty days to leave Union Station. However, Greyhound tried to beat JRA to the punch.  The complaint states: 

25.   Before it received JRA’s Notice of Termination, Greyhound secretly made arrangements to leave Union Station, and moved its operations to a Love’s Truck Stop in Flowood, Mississippi, in conjunction with a 30-day Notice of Termination letter dated August 22, 2022, sent by Greyhound to JRA, and to an outdated address for counsel for JRA.

26.  JRA did not receive the August 22, 2022 letter from Greyhound until after it had transmitted its own Notice of Termination on August 25, 2022.

27.   After attempting to move its operations to the Love’s Truck Center in Flowood, Greyhound received a “cease and desist” letter from the City of Flowood, demanding that it shut down its operations at that site due to unsuitability and lack of proper zoning for operation of a bus terminal.

28.  Greyhound complied with Flowood’s demands and halted operations there. It then resumed operations at Union Station.

The war over rent continued as JRA claimed Greyhound owed rent of $617,250 but gave the company additional time to pay the balance.  The company shut down its service at Union Station. The company did not remove its external fuel tank. 

JRA accused Greyhound of breach of contract and damages of $617,250 as well as attorney's fees, holdover rent, and interest. The plaintiff also asked the Court to award JRA the costs of removing the underground fuel storage tank. 

The case is assigned to U.S. District Judge Daniel Jordan, III.  



30 comments:

Anonymous said...

How much of that partial payment of $189,000.00 did the law firm keep?

Anonymous said...

It appears to me that Greyhound may have contributed to Lamumba’s election fund. Maybe someone with some authority will look into this.

Anonymous said...

Should have known that there was more to the story. Credit to the City of Flowood of shutting that down before it got going.

Anonymous said...

Greyhound customers must also take blame for causing damage to Union Station over the years. Greyhound should be responsible not only for past rent due but for maintenance upgrades of facilities used. So much for corporate social responsibility. Governor helped on water crisis please assist on city of Jackson redevelopment .The leadership is a must .

Anonymous said...

@1:10 PM How much went to Chowke?

Anonymous said...

Attn 1:56 I heard from a good source that His Honor the mayor is going to get right on this……..well at least he will after the water crisis is solved, after the roads are made drivable, after the excessive violent crime rate is abated, after the city murder rate falls in line with the national average, after drag racing on the interstate is stopped, etc. It shouldn’t be long.

Anonymous said...

Adam Stone and Kaytie Pickett are really raking in on the public $ funded litigation. Only a matter of time before Lord Snow calls them to the castle in Ridgeland.

Anonymous said...

Wasn’t there an elaborate celebration complete with ribbon cutting, wine sipping, etc., when Union Station opened?
And a speech by Mayor Harvey Johnson?
His name continues to surface as do the problems.

Anonymous said...

The palm grease needs an oil change, right?

Anonymous said...

Yaw always got some racist ass bullshit to spew for every post

Anonymous said...

Oh, yes, JRA ... what a stellar track record of outstanding achievement.

Anonymous said...

@2:47 PM, please point out some of that racist ass BS that you claim. I'm so sick and tired of everything being labeled racist. We are just calling things like we see it. As the saying goes, the truth hurts. Go whine somewhere else!!

Anonymous said...

@ 1:10 - It matters not what the attorneys received for their work. On the remote possibility that you're a working man, owning your own business, how often do you perform work without expecting to be paid for your time and labor?

And, yes, Chokwe will find a way to weave this into his sad tales about the pitiful past, present and fate of Jackson while under the white man's thumb...although JRA is not an instrument of the city.

Anonymous said...

@2:47 - I read back through all the posts and see nothing about race. WTF are you hallucinating about now, and who the hell is yaw?

Anonymous said...

3:09, JRA is not an instrument of the city? The board is appointed by the Mayor and confirmed by the City Council; when they came up short on monies to pay bills, didn't the city have to cover those bills from the city's general fund?

I realize they, like the airport are a separate entity and supposed to be operating independently of the city, but aren't they still tied at the hip? And didn't their stupid lease agreement on the so-called parking lot across from the convention center cost the city several million dollars to reclaim after (many people's favorite) Mayor Melton gave it to the Texas developers?

Think they are an instrument of the city, just not a department under the direct thumb of the mayor's slick palm.

Anonymous said...

Why are two separate firms representing JRA? Jones Walker and Stimley Brown?

Anonymous said...

3:51- one to do the work & one to get paid!

Anonymous said...

JRA email addresses are with the city's domain. It's a very gray area as to how independent they are, right?

Anonymous said...

So, allow the rents fall into arears until a large enough amount has accumulated then pay a ladumbo connected law firm to collect and keep 30%. Sounds like a racket.

Anonymous said...

The last time I rode a Greyhound bus was in the early 1970’s to army basic training. Unless something changes greatly, which I can’t imagine, that will also be the last time I will ever travel on one!

Anonymous said...

This actually kind of funny.



Anonymous said...

Regarding the underground storage tank (UST). The owner needs to file a temporary closure of the tank. If they continue to do daily and monthly records, they will be in compliance. By paying annual fees and doing required record keeping, they maintain their trust fund eligibility. Mississippi has some of the most lenient closure standards in the country. Their allegation of harm is unfounded. Even if it did leak, as long as they were trust find eligible, the state would pay for remediation, but not the removal. There are enough certified closure companies out there, greyhound could find a good low bid to remove it.

If JRA owns the tank, it would cost 4 times (estimated guess) to remove it because of the crap you have to put up with bidding out the work.

Anonymous said...

although JRA is not an instrument of the city. October 25, 2022 at 3:09 PM

I posted that! Meaning JRA is not a horn to be tooted by City Hall. It was true when posted and it's true now. Regardless of who appoints whom, JRA is independent, just like the airport board (supposedly).

Anonymous said...

Da Dishlicker didn't pay de rents....

Anonymous said...

Doesn’t surprise me. They are a horrible company!

Anonymous said...

Friends don't let friends near a Greyhound bus. Yuck!

Anonymous said...

"“You keep using that word (Racist). I do not think it means what you think it means.”

Anonymous said...

did they pay there water bill?

Anonymous said...

Greyhound caught the Katy and left Jackson a mule to ride.

Anonymous said...

Right on cue...

https://www.wlbt.com/2022/10/26/jra-seeking-617k-back-rent-greyhound-parent-company/



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