POLK COUNTY, Iowa– What once had been a field of dreams in Johnston has turned into a living nightmare for taxpayers.
The developers of a proposed state-of-the-art sports facility have filed a multimillion-dollar countersuit against the city.
Ignit Johnston was supposed to be a 30-acre, 200,000-square-foot sports complex. It was described as a “welcome mat” to the city that would drive major economic growth. Six years after its inception, the property remains partially developed and dormant.
In March, the City of Johnston filed a breach-of-contract lawsuit against the company to recoup roughly $3.6 million. The suit alleged the developers failed to meet their contractual obligations and, under the development agreement, must repay millions of dollars in incentives previously provided for the project.
Now, Ignit is fighting back, filing a counterclaim seeking more than $142 million in damages. Ignit Johnston alleges it was damaged by the city’s actions and inactions, claiming delays caused by Johnston pushed the project “into one of the most difficult capital markets, and historic inflationary periods.”
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Among the legal claims against the city are breach of contract, breach of the implied covenant of good faith and fair dealing, negligent misrepresentation, negligence, and unjust enrichment. According to the court filing, the alleged damages stem from project delays, increased financing costs, inflation, consulting and planning expenses, land acquisition costs, lost opportunities, and other project-related losses.
The filing argues that city actions delayed the project by at least two years and alleges Johnston failed to fulfill commitments that were critical to moving the development forward. The city denies those allegations in its own lawsuit…