YOUNGSTOWN, Ohio (WKBN) – The city of Youngstown will be paying out a settlement to a former tenant of 20 Federal Place.
According to court records, a civil suit was filed against the city of Youngstown by Gayatri Management Corp and Chhaya Joshi, the listed franchisee of the Subway that was located in the food court.
Joshi sued the city when the tenants were forced to move out of the building so that it could be redeveloped.
The lawsuit claimed that Joshi made improvements to the Subway and had signed a five-year extension that would have lasted until 2026 and that the city violated this by trying to evict them early. However, in an answer to these claims, the city denies Subway notified the city that it would be extending its lease.
In a Feb. 21 decision, a magistrate ruled against Subway, finding that the tenant was considered to be on a month-to-month contract and was subject to eviction.
However, the magistrate also found that the city fell short in its efforts to evict the tenant. The city served the tenant with a three-day eviction notice on Sept. 23, 2022. However, it continued to accept and cash rental checks from the tenant for the months of September and October.
On March 7, Joshi filed an objection to the magistrate’s findings.
City Law Director Jeff Limbian said, to avoid further litigation, the city agreed to settle and pay Joshi and Gayatri Management Corp $25,000.
“The city is pleased that we can move forward now without any hindrances in the demo process,” he said.
Limbian says he is happy with the settlement amount since initially, the Subway owner was asking for over $600,000.
He says Subway has moved out of the building.