The former developer and operator of Knowles Assisted Living Center sued Metro, the Metro Development and Housing Agency, outgoing Councilman Nick Leonardo and Councilman Jim Shulman on Friday for failing to hold up their end of his contract, resulting in the financial turmoil for the publicly owned facility.
Vision Real Estate and its principal, Mike Hampton, sued for $120 million in damages for violating his property rights and for the “intentional, reckless and malicious actions” that led to the violation of his contract.
Seeking to reduce its approximately $10.5 million annual subsidy for Knowles and other hospital authority facilities in 2014, Metro contracted with Vision Real Estate Investment and its sister company Autumn Hills to run the facility.
Under the terms of the deal, Metro would phase out its subsidy and sell Knowles in exchange for giving Vision development rights for nearby city-owned land.
Within three years, the city subsidy for Knowles went from $1.75 million to zero, but the ancillary development never came…