Nov. 17—Two years later and after thousands of taxpayer dollars were spent on legal fees, the dispute between the city of Middletown and Start Skydiving and the Hart family was settled Tuesday night.

The emergency legislation passed 4-0 during the City Council meeting with Mayor Nicole Condrey, who is affiliated with Start Skydiving and Team Fastrax, the Middletown-based professional skydiving team, abstaining as she has throughout the process.

The settlement ends four lawsuits between the city and John Hart II, John Hart III and Start Skydiving, LLC and executes a new lease for the spaces to be occupied by Start Skydiving.

In exchange, the parties have agreed to a new lease that contains provisions for the build-out of an additional 10,000 square foot hangar for Start Skydiving not to exceed construction cost of $1.4 million. The hangar must be built within 18 months after plans are submitted and approved, according to city documents.

Within two weeks after the agreement is signed, the city and Start Skydiving must file a joint notice of dismissal with prejudice, and take any other steps legally required to dismiss the lawsuits and without further costs or attorneys' fees to any party, according to documents.

Council members appeared relieved that the cloud of controversy that has hung over the city since 2020 was lifted.

"I'm glad we're moving forward and appreciate the time put into reaching this settlement," council member Tal Moon told the Journal-News. "Ending the litigation is in the best interest of the city. I look forward to new development at the airport that will benefit both tenants and the city at large."

Vice Mayor Monica Nenni thanked City Manager Paul Lolli and his senior staff for their "time and energy" to end the lawsuits. She looks forward to a "more harmonious" relationship between the city and Start Skydiving that will propel Middletown Regional Airport in its "growth and development as a destination."

First-year council member Rodney Muterspaw, who spent 30 years in law enforcement and five years as Middletown police chief, said when it comes to lawsuits it's important to "weigh the evidence vs. the risk" and whether it's worth going to trial.

"Nobody wins in these things," he said.

Later, he added: "We have to move forward."

In a text message to the Journal-News, John Hart II credited Lolli, whom he called "a man with strong moral character" for piloting the settlement. Hart said the "egregious acts" of a few former city employees against Start Skydiving "was not worth pursuing further at the cost" of the Middletown taxpayers.

This settlement agreement allows Start Skydiving to continue to create jobs, be a steward of goodwill and invest in the economic future of Middletown, according to Hart. He added his company will continue to be the official sponsor of The Ohio Balloon Challenge, Wreaths Across America at Woodside Cemetery, Middletown Back to School Supplies, Hops in the Hangar, Middletown Police Department K9 protective vests needs and dozens of other local community charities.

Lolli didn't comment on the lawsuits during Tuesday's meeting, but earlier had said: "I believe it is in the best interest of the city to completely resolve these matters with such an important partner of ours at the airport and we've been working diligently to get this completed."

The new lease starts once the certificate of occupancy is issued and lasts for eight years renewable for four times. So the lease could last 32 years.

Start Skydiving's rent will increase from $795 per month to $4,500 per month once the hangar is built. After eight years, the rent will increase 2%, or $90, per month, according to city documents.

In addition, Start Skydiving, which has operated at the airport since 2009, will be a self-service fueling entity and may purchase its fuel from its source of preference, according to documents. The fuel can be delivered and stored in its 10,000-20,000 gallon containers located adjacent to the city's existing gas storage location.

LAWSUITS FILED BY THE CITY, START SKYDIVING

Open meetings lawsuit: On Dec. 28, 2020, John P. Hart III, a co-owner of Start Skydiving, filed a civil complaint in Butler County Common Pleas Court against the city of Middletown and council members Talbott Moon, Monica Nenni, Joe Mulligan and Ami Vitori alleging the council illegally went into executive session on Nov. 13, Dec. 1 and Dec. 15, 2020 to consider the lease of public property.

Mayor Nicole Condrey was not listed as a defendant since she abstained during the vote to go into executive session and did not participate in the discussion. She is limited by an Ohio Ethics Commission Advisory Opinion due to her past employment and current affiliation with Team Fastrax, a professional skydiving team operated by the Hart family.

Middletown complaint and eviction notice: On Jan. 7, 2021, Middletown filed a civil complaint against Start Skydiving and Selection Management Systems, Inc., for declaratory judgment and other relief in Butler County Common Pleas Court. In addition, it also filed an eviction notice for Start to vacate the office space in Hangar 1707 that is used for the airport manager and Fixed-Base Operator.

City officials allowed Start to remain in that space as productive conversations happened between Start Skydiving and the city toward resolution of real estate and operational issues among them.

Federal lawsuit filed by Start Skydiving: Start Skydiving filed a lawsuit in U.S. District Court in Cincinnati late in 2020 against the city, Matt Eisenbraun, then assistant economic development director who oversaw the airport, and Dan Dickten, former airport manager.

Start said that "this case is about the ongoing vindictive, corrupt, and deceitful attempts by the city and its key personnel to kick Start out of the airport and to harm its business, despite Start's 20-year lease at the airport which runs through 2029."

Start alleged city personnel hacked into Start's online financial database to spy on Start and steal its business data in violation of Start's civil rights under federal law, spread false and defamatory statements about Start's operations and made up claims of unsafe operations by Start that were not true. The company also raised claims about ongoing lease issues with the city.

Criminal complaint against past, present city employees: Three former and current Middletown employees were charged in December 2020 following a criminal investigation by police.

Middletown police were contacted Sept. 15 by John Hart II of Start Skydiving, who alleged hacking, corporate economic espionage and illegal recordings by city employees at the Middletown Regional Airport.

The investigation was completed Dec. 8 and was reviewed by an outside prosecutor for charges. Hart II signed the complaint Dec. 22.

SOURCE: Journal-News archives