Deposition: Elyria employee suggested city purchase of Reaser Pointe Crossing

Depositions in lawsuit by DBR Commercial Realty against the city of Elyria show that a city employee sought the purchase of the Reaser Pointe Crossing property without the authority to do so. In depositions given by Mayor Kevin Brubaker and Assistant City Engineer Bill Forthofer, both men said that Forthofer suggested to DBR owner Dan Reaser that he sell the property to the city. Reaser has plans to turn the property around the Reaser Pointe Crossing Connector road in southeast Elyria into a mixed-use development with roughly 420 townhome residences. DBR and the city entered into an agreement in 2019 to build the road through the property and additional public improvements through a tax increment financing agreement, or TIF. The road was completed in 2020, but Reaser has since sued the city and alleged that the road was built improperly and has thus caused flooding on the property, making it undevelopable. The original lawsuit was paused when Brubaker, whose campaign Reaser supported, took office in 2024 and the city and company reached a new agreement. The new agreement saw the project change from a commercial-only project to a mixed-use commercial and residential development. Also in the new agreement, the city did not accept that the road was built improperly, but did agree to pay for remediations. Reaser alleged that the city failed to abide by this agreement, and DBR renewed its legal action against the city in January. As a part of this renewed lawsuit, DBR and its attorneys have been holding depositions, interviewing city employees under oath. Copies of the deposition that Brubaker delivered on May 23 and the one given by Forthofer on June 17 were provided to The Chronicle-Telegram, showing that Forthofer inquired with Reaser about the idea of the city purchasing the property in question. In his deposition, Forthofer confirmed that he made such an offer, saying it occurred during a meeting last year that included himself, Reaser, then City Engineer (now assistant city engineer) Kathryn McKillips and John Walsh, and engineer with GBC Design in Akron who was working for DBR. He added that others may have been in attendance, but he could not recall. Forthofer said in his deposition that during this meeting, he suggested to Reaser that the city might purchase the property. He stated that Reaser responded "We should talk about that." Forthofer also said that he never discussed the idea with Reaser again, and he never offered to buy it himself. Brubaker said in his deposition that he was informed of the suggestion after the fact by both Forthofer and Reaser. "When (Forthofer) mentioned it to me, he had stated that why (don't) we go to Mr. Reaser and offer him X million dollars and let him walk away," Brubaker said. "He's not going to get any more than that. And my comment to him was, `We're not buying it. Stop those conversations.'" Reaser said over the phone on Wednesday that Forthofer made similar offers a total of three times between January and April 2024, and he asked Brubaker to instruct Forthofer to stop bringing the topic up when he realized Forthofer was not authorized to make such an offer. He also alleged that Forthofer also offered to buy the land himself. Also discussed in both depositions was the fact that Forthofer has worked alongside another local developer, Bob Yost, owner of Dale Yost Construction in Elyria. Forthofer said that he was a partner with Yost on two different development projects in Elyria through Ridge Water Ltd. He said that he is a 49 percent owner of Ridge Water, while Yost owns 51 percent of the company. Ridge Water is completing Ridge Water, a 150-home, 50-condo project in far west Elyria, and Juniper Ridge, a just-beginning 50-condo subdivision development on Brunswick Drive. Forthofer said that Ryan Homes built the majority of units at Ridge Water, but that Ridge Water Ltd. would not be working with the national builder for the Juniper Ridge project. David Cuppage, an attorney representing DBR, asked Forthofer in the deposition if he felt that the Reaser Pointe Crossing development would serve as competition for his own developments. Forthofer said he did not feel that way. "Well, you'd have to be competing against somebody that was doing something." Forthofer said in his deposition. "Dan isn't doing anything." Forthofer added that his own developments were different sizes and "platforms" as opposed to what Reaser had proposed. Cuppage asked Brubaker during his own deposition if he felt that Forthofer had a conflict of interest when he suggested to Reaser that the city buy DBR's land. "I believe it was unprofessional and unwarranted, for sure," Brubaker said. Brubaker said he did not discipline Forthofer, only ordering him to stop talking to Reaser about a sale. Reaser said on Wednesday that Forthofer had never brought up the idea to him again. Forthofer did not return requests left for comment. Elyria Law Director Amanda Deery and Steven Friedman, an attorney for Squire Patton Boggs who is representing the city, declined to comment, citing the fact that litigation is pending. Brubaker spoke with The Chronicle by phone last week, confirming his statements in the deposition and adding that Forthofer was not reprimanded for the comments. Reaser said he looks forward to continued depositions, which he said would prove his allegations that some city employees were trying to "block" his project from proceeding. "We are following the money trail now, to see what is going on, who's benefiting from the shutting down of our project," Reaser said. "We have been five and half years, it is ridiculous. We could have had this project done and completely built out." The city has published an agenda for a Strategic Planning Committee meeting on Monday which includes discussion, and possibly a vote, on a new development agreement with DBR that would allow the project to move forward. Reaser and city officials have discussed the possibility of the Lorain County Port Authority taking over the TIF bonding for the project, meaning the Authority would pay for the public improvements on the project and then recoup the cost through payments in lieu of property taxes from property owners in the project. Contact Owen MacMillan at (440) 329-7123 or omacmillan@chroniclet.com.