Features
Wenatchee Arena Hearing Set
Wenatchee, Wash., will get its day in court next year with arena developer Global Entertainment, which constructed and managed the city’s Town Toyota Center before the arena defaulted on more than $42 million in bonds in 2011.
The city filed suit against Global Entertainment earlier this year alleging the company breached its contract and was negligent in its promotion of the events center and management of the building.
According to court documents obtained by the Wenatchee World, the city contends it was forced to file suit to determine its debt capacity and had to contribute more than $3.5 million toward payments to investors.
Wenatchee is seeking compensation from Global Entertainment for debt incurred to cover the arena’s financial troubles.
Global is seeking to dismiss the suit.
In court documents, the company argued it was made the “scapegoat” by the city after the arena was built and failed to meet revenue projections during a period of economic downturn.
The city did not provide Global with “a fair opportunity to achieve the financial projections over time” the documents note, adding Global was not “owe an independent duty” to Wenatchee to properly manage the Town Toyota Center, the World said.
A hearing has been set for March.