Judge wants more facts in Fall River vs. FROED case

FALL RIVER -- Does FROED owe the city of Fall River $113,000 in back rent?

It's going until after Memorial Day to figure that out.

With both sides seeking a summary judgment in the case of the City of Fall River versus the former Fall River Office of Economic Development concerning back rent, the case came before a New Bedford Superior Court judge on Thursday.

City Corporation Counsel Joseph Macy and attorneys for the former FROED, Randall T. Weeks and Paul Kessimian, were back before Superior Court Judge Raffi Yessayan seeking a ruling, without having to take the matter to trial, on the city’s claim the economic development non-profit owes $113,000 for three years of tenancy in their offices, which were located in One Government Center since the mid-1970s.

Yessayan listened to the lawyers’ arguments for about 45 minutes and said he wasn’t convinced the matter “was rife” for a summary judgment and that more facts needed to be determined.

The judge then scheduled a new trial date for May 29. The original date was to be March 4.

Macy argued the basic facts of the matter are “undisputed.”

“The city owned and owns and controls property at Government Center. The defendant occupied that space for many years,” said Macy.

The former FROED had a licensing agreement to pay rent with the city, said Macy, and when it expired they failed to continue to pay the city.

“When rent was requested they vacated the premises,” said Macy, adding that as a landlord-tenant case the city should prevail.

The administration under Mayor Jasiel Correia claims that former FROED owes the $113,000 for rent they failed to pay for three years between July 1, 2014 and July 2017.

The former FROED didn’t pay rent under mayors Will Flanagan, Sam Sutter and the first 1½ years of Correia’s first term.

Macy argued that no mayor has the right to waive rent for an entity under state procurement law.

“The fact is the government can’t waive the people’s right to collect rent,” Macy said.

Yessayan questioned why none of the administrations ever included FROED rent as part of city revenue.

“It doesn’t seem like an oversight to me,” Yessayan said.

Weeks argued that the city, by not entering into a contract with the former FROED for rent that exceeded $35,000 annually and not going out to bid for the space, violated state procurement law, 30B.

“So how is it that the city can come back and say that FROED owes $37,706 annually, $113,000 over three years, when they didn’t comply with 30B?” said Weeks, adding that would be in FROED’s favor.

The case has been active since Macy filed a notice that FROED, now the Bristol County Economic Development Consultants, had to leave city hall in May 2017.

But an acrimonious relationship between Mayor Jasiel Correia II and FROED, particularly Vice President Kenneth Fiola Jr., developed the previous March.

Since then, the non-profit has moved out Government Center and funding through Community Development Block Grants to BCEDC was removed by Correia, ending any formal economic development program since the spring of 2017.

If the case moves ahead to trial in the spring, a number of elected, formerly elected officials and other city officials could be called to testify, including Correia, Sutter, Flanagan and City Administrator Cathy Ann Viveiros.

Email Jo C. Goode at jgoode@heraldnews.com.