“It’s a good deal for the city, and it’s a good deal for Start Skydiving and (SMS),” he said. “I think this allows both groups to move forward and let us take a look at the airport and see where we can go in the future together.”
“It’s a good day for Middletown.”
Start Skydiving and SMS owner John Hart told Journal-News the settlement allows his “family business to move forward in a positive manner while forgiving the past.”
“We will be diligent to remain a beacon of success while continuing to serve the Middletown community and others,” Hart said.
When asked if he was satisfied with the agreement, Hart said “satisfaction was not a requirement to settle.”
“The ability to be in an environment where we could succeed was the number one priority and this settlement allows this,” he said.
The agreement details include a mutual release of claims from all parties; no required hangar extension; and a one-time payment of $795,000 from the city and its insurance carrier, according to a press release.
Existing leases for Start Skydiving and SMS will run until 2029 on original lease terms. The agreement allows for the possibility that the city could continue its partnership with Start Skydiving and SMS after those leases expire, according to a press release.
Start Skydiving also agrees to dismiss litigation against Daniel Dickten, former airport manager, and Matthew Eisenbraun, former assistant economic development director who oversaw the airport.
Defendants Dickten and Eisenbraun are not required to sign the settlement agreement, but can if they want to participate in mutual dismissals. Even if they do not sign, but the city does, Start Skydiving agrees to never recommence any litigation against Dickten and Eisenbraun unless either defendant does so.
Previous attempts at settlement
In November 2022, city council authorized a lawsuit settlement, but five months later, Start Skydiving owners hadn’t signed the agreement, according to court documents filed in March 2023 by the city’s attorney.
Hart said Start Skydiving hadn’t agreed to the terms of the settlement before the city authorized it.
This settlement included an eight-year lease with three eight-year renewals and a new hangar worth up to $1.4 million. The new lease was supposed to start once the certificate of occupancy was issued.
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 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, Eisenbraun and Dickten.
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.
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