Developer Rob Smyjunas wins more money from The Port over Millennium Hotel deal

The Port of Greater Cincinnati Development Authority lost another legal fight with local developer Rob Smyjunas in a decision Tuesday from the Ohio Supreme Court.

Like the Port's previous battles with Smyjunas, this one also comes with a financial cost.

The Supreme Court, in a 5-2 decision, found that the Port owes Smyjunas about $350,000 in interest on top of the $5 million the Port already was ordered to pay the developer for his role in the redevelopment of the former Millennium Hotel site Downtown.

The Port had argued that it was immune from paying "prejudgment" interest on the $5 million while it battled Smyjunas in court over the $5 million fee. A lower court ruled against the Port regarding the fee, requiring payment of the full amount to Smyjunas and his company, Vandercar, but it found no interest payments were required because the Port's actions on the redevelopment project were an "essential government function."

The state's high court, however, reversed that finding Tuesday, determining the Port should be treated the same as any other individual or entity under the law.

"A port authority cannot claim immunity against liability for those actions simply because those actions are considered essential government functions," Justice Patrick Fischer wrote for the majority.

How Smyjunas got involved with the Port

Fischer was joined by Chief Justice Sharon Kennedy and justices Pat DeWine, Michael Donnelly and Jennifer Brunner. Justice Melody Stewart and appellate Judge Mike Powell, sitting in for Justice Joe Deters, joined in a dissent, arguing state law grants significant immunity to governmental and quasi-governmental agencies, such as port authorities.

"While not the outcome we had hoped for, our focus remains on addressing the most complex real estate challenges in Hamilton County," Port spokesman Tom Millikin said in a statement.

Smyjunas's connection to the Millennium redevelopment project goes back five years, when he secured a purchase contract for the hotel in 2019 from Singapore billionaire Kwek Leng Beng. Smyjunas then made a deal with the Port to transfer his purchase rights to the agency in exchange for redevelopment fees.

The Port paid him $2.5 million after closing on the $36 million Millennium sale in early 2020, but the Port refused to pay Smyjunas the additional $5 million fee.

In a protracted legal dispute over the fee, Smyjunas argued he was owed the money because his deal with the Port required payment of the additional $5 million if the Port issued redevelopment bonds for the property within a year of the deal's closing.

The Port did approve almost $59 million in bonds to acquire and demolish the hotel, and Smyjunas said those bonds should have immediately triggered payment of the $5 million fee. He won his breach of contract dispute with the Port a year later and got his money.

Now, he'll also collect interest on that money for the time he fought for it in court.

This article originally appeared on Cincinnati Enquirer: millennium hotel: rob smyjunas wins more money from cincinnati port