By Eric Curl
Oct. 27, 2022 – A local commercial real estate firm is seeking damages in a breach-of-contract lawsuit filed Tuesday against StudioSavannah, LLC, the developer of the proposed 30-acre sound stage and movie production space in the western limits of Savannah.
Savannah-based Development Associates, Inc. (DAI) alleges in the complaint that StudioSavannah misrepresented its intentions and refused to abide by the terms of an agreement by cutting DAI out of its role as an investor and developer in KAT-5 Studios, in an attempt to divest DAI of its 50-percent equity interest in the project.
Based on StudioSavannah’s misrepresentations, DAI kept significant capital on the sidelines and passed on other business opportunities with the intent of using the funding to purchase the property for the benefit of the joint venture between the two parties, DAI’s complaint further states.
In addition, DAI says it expended significant capital and resources toward the purchase and development of the project. Such efforts succeed in getting the project “to the starting block” by locating and negotiating the purchase of the property, as well as facilitating StudioSavannah’s ability to promote the project to potential investors, lenders, tenants and industry parties, DAI claims.
In the lawsuit, DAI is seeking damages for the economic harm the company says was caused by StudioSavannah’s alleged “fraud” and “false promises”, along with punitive damages to deter SavannahStudios from similar conduct, and all attorney and court costs.
SavannahStudio, a partnership between David Paterson of Arcady Bay Entertainment and Taylor Owenby of ISP Global Capital, has not responded, following Savannah Agenda’s attempt to reach the company for comment via KAT-5 Studios’ online contact form on Wednesday and Thursday morning.
The lawsuit comes after StudioSavannah successfully petitioned for a height variance to develop the film production complex and theater on Savannah’s western edge. The petition for a 15-foot height variance from the 45-foot height maximum for the project at 2442 Fort Argyle Road was approved by the Savannah Zoning Board of Appeals on Aug. 26, 2021. StudioSavannah then purchased the property for $1.8 million on Feb. 23, 2022, according to sales records.
The undeveloped 30-acre commercial site is located in New Hampstead, a 4,300-acre planned development that is expected to add thousands of single-family and multi-family housing units to the area.
The proposed studio has received coverage by local and national media outlets, including Forbes, Variety and Deadline. In a Savannah Morning News article published earlier this month, Owenby claimed that with more than a year ahead of the expected opening, the studio has received competing offers from “global production companies” wishing to secure the 130,000-square-foot sound stage with long-term partnerships.
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