‘Time for both parties to move on’: Settlement of civil lawsuit against city allows Welcome Inn owners to seek property sale

QUINCY — Nearly three years after city officials displaced more than 250 people by closing the Welcome Inn at 200 Maine, officials with the City of Quincy have agreed to a settlement and dismissal of a civil lawsuit, clearing the way for Quincy Property LLC, owners of the Welcome Inn, to explore a possible sale of the property.

Eighth Circuit Judge Scott Larson dismissed the case on June 21.

James Palmer with the Quincy law firm of Scholz Palmer and Duesterhaus, along with Mitchell Paglia and Jeffrey Grossich with Ancel Glink from Chicago, represented the city in the lawsuit. He said the city is paying $50,000 to Quincy Property LLC in the settlement.

“I can tell you this definitively (that) they wanted 10 times that much on their settlement demand,” Palmer said. “That was their compromise number. If you read between the lines in that lawsuit, they wanted millions of dollars in damages.

“That was a good number for them. It probably helped pay some of their attorney’s fees, although I know it didn’t pay all of them.”

Documents filed with the Illinois Secretary of State’s office show the agent for Quincy Property LLC is Incorp Services, Inc., of Springfield. The managers of the LLC are Quentin Kearney and Ken Logan of Blue Springs, Mo.

Logan said in a text conversation with Muddy River News that he has received a letter of interest (LOI) from someone interested in buying the property.

“I believe this plan developed is the best exit strategy for our group,” Logan said. “The lawsuit would definitely be an issue standing between everything, so best we move on and stay focused on completing the terms of the LOI and ultimate sale of the land and building.

“We feel pretty confident that all parties are on the right track here, and that’s about all we can comment on at this point. The LOI gives the buyer 180 days with some options for small extensions, so we’re hoping (for a transition of ownership) by year’s end.”

Officials with the Quincy Police Department and Adams County Sheriff’s Department were at the motel on the morning of July 28, 2021, to inform residents, employees and owners of the city’s decision to shut down the motel. Notices were placed on every door at the motel, informing people “the structure is unsafe, and its occupancy has been prohibited.”

Troup said that day the motel must close its operations “due to the unsafe conditions that independent structural engineers have reported, based on their walkthrough and inspections on this property.” He said at least 300 people living at the motel were displaced. 

The motel has since been closed.

Quincy Property LLC filed its lawsuit in June 2022, claiming the city’s actions to close the motel were “arbitrary, capricious and undertaken in bad faith.” It claimed the decision to close the motel came five days after a city official had written in an internal email that it “may not be necessary to close the entire structure.”

The suit was filed by attorney Paul Puricelli with the St. Louis firm of Stone, Leyton and Gershman on behalf of Quincy Property LLC. 

The suit claimed the city’s execution of directing residents to vacate the Welcome Inn premises was done in an “ill-planned and poorly executed fashion, resulting in calamitous bedlam at the site. Residents (and likely others) systematically caused extensive damage to the building, breaking windows, knocking holes in walls, stealing televisions and other appliances, removing furniture and stripping the facility of all manner of personal property. The city left the Welcome Inn unguarded and unprotected from further infiltration and damage.”

Quincy Properties was asking for damages “well in excess of $50,000.”

In the two years since the suit was filed, attorneys for the city of Quincy filed motions to dismiss on Sept. 21, 2022, Nov. 28, 2022, and July 25, 2023.

“We had several motions to dismiss that were granted, and (Larson), in his wisdom, wanted to give the plaintiffs a chance to have their day in court,” Palmer said. “That’s why it took as long as it did.

“We had a motion to dismiss pending for a while, and Judge Larson kind of got caught in a bind with regards to time constraints. Judges were retiring, and another judge got removed from the bench, and (Larson) got very busy, so this motion was sitting there. The plaintiffs, I think, thought about this and contacted (Ancel Glink) in April saying, ‘Would you be interested in settling this case?’ That’s where the discussions got started. They wanted to try to get rid of this. … This is speculation on my part, but after many years of litigation, people settle cases when they think that it’s probably a good idea to settle cases.”

Quincy Property LLC provided to Muddy River News in July 2022 copies of emails — obtained through a Freedom of Information Act request — written by city officials about soliciting offers to buy the Welcome Inn. Emails written by Chuck Bevelheimer, director of planning, and Quincy Mayor Mike Troup said Quincy Property LLC’s asking price for the property at that time was $1.4 million.

Logan said the group that has signed a letter of interest to buy the property has “extensive experience in Type A businesses.”

“Anyone would like to have (this group) in their backyard,” he said in his text. “I have not had super detailed conversations on what they want to do, as my concern primarily is an exit plan.”

A Holiday Inn hotel opened at 200 Maine in February 1964. It has operated under several names since 1980. Quincy Property LLC bought the property in 2016.

Troup deferred all questions about the settlement of the lawsuit to Palmer.

“I stand by this. It was settled,” Palmer said. “It was a fair settlement for everybody. They wanted a lot, lot, and I’m going to say one more lot, more than they got. (The city) paid probably a little bit more than what I would have probably agreed to if it would have come out of my pocket, but not much. … From that point of view, it was a good settlement for the city.

“This was a time for both parties to move on. I agree with that 100 percent. This gives (Quincy Property LLC) an opportunity to do something with that property, and it gives the city a fresh start with respect to how to deal with them or anybody else who might buy that property. I’ve heard the rumors … that there are people wanting to buy that property, but if it’s in the middle of litigation, nobody’s going to want to buy it.”