Salon at 4th and Race Street files lawsuit against Cincinnati

CINCINNATI, OH (FOX19) - Work on the multi-million dollar 4th and Race Street development is making progress, but one key hurdle is re-locating the Paragon Salon.

On Wednesday, the salon filed a lawsuit against the city saying they were essentially a bad landlord for not taking care of the property.

Moving the Paragon salon is something that will cost roughly $1.3 million. Earlier this week, city officials said they were opposed to using city money. Now, a solution is on the table.

"The developer called me this morning about 9 a.m. and said we will pay for the salon Paragon to move and be rebuilt," said Chris Seelbach.

Paragon's attorney says they've had some deals in the past fall apart, but he hasn't heard anything regarding this latest deal from the developer Flaherty and Collins.

"Every time Paragon gets to where it thinks is in end and a result, something falls apart," said attorney Matt Fellerhoff.

Just more than a year ago, the city purchased the Pogues Garage property to move forward with this development. Attorney Matt Fellerhoff says his client's business has suffered.

"The building, itself, and surrounding access ways are either closed or falling apart and the garage has not been maintained and continues to deteriorate," said Fellerhoff.

"We're constantly putting out fires and things and we can't even manage our business because we're too busy managing the problems that are occurring," said Paragon owner Debbie Celek.

The proposed plan features a multi-million dollar high-rise with apartments, a grocery store, and a parking garage.

But Fellerhoff says Paragon is staying until further notice.

"We have a right to stay here, the mayor says we're going to stay here, and that's what we're going to make sure happens" said Fellerhoff.

"Hopefully the announcement from Flaherty that they're going to pay for the move combined with movement on council and the mayor, hopefully they're going to see that it's time to drop the lawsuit," said Seelbach.

Paragon's lease with the city runs through 2017, and the salon representatives say they fully intend to stay open at this location until some sort of deal is reached.

This week, 3CDC agreed to act as an adviser for the city on the 4th and Race Streets project. The city hopes to start construction by the end of the year.

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