By Eric Curl
Jan. 2, 2023 – The developer of a proposed 30-acre sound stage and movie production space in the western limits of Savannah recently responded to a breach-of-contract lawsuit filed by a local commercial real estate firm.
In the Dec. 26 court filing, StudioSavannah LLC denies the Oct. 25 complaint alleging that Savannah-based Development Associates Inc (DAI). was cut out of its role as an investor and developer in KAT-5 Studios.
StudioSavannah, a partnership between David Paterson of Arcady Bay Entertainment and Taylor Owenby of ISP Global Capital, claims in its response that DAI’s allegations should be dismissed because there was no binding contract between them. The “Term Sheet” is “illusory and merely constitutes an agreement to agree,” StudioSavannah’s court filing states. “Under these circumstances, there is no valid contract between the parties.”
In August 2021, StudioSavannah successfully petitioned for a height variance to develop the film production complex and theater on Savannah’s western edge at 2442 Fort Argyle Road. StudioSavannah then purchased the property for $1.8 million last February, according to sales records.
In the complaint, DAI says it expended significant capital and resources toward the purchase and development of the project. The company is seeking damages for the economic harm it says was caused by StudioSavannah’s alleged “fraud” and “false promises”.
In its response, StudioSavannah filed a counterclaim seeking relief, including the recovery of attorneys’ fees and costs, related to the “unnecessary trouble and expense” caused by DAI’s complaint.
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