Statement from Midtown Development on the closing of Black's 501 - KWWL - Eastern Iowa Breaking News, Weather, Closings

Statement from Midtown Development on the closing of Black's 501 and Sky Event Center

Posted:

The following statement was sent to KWWL by Midtown Development and the Nelsons regarding the closing of Black's 501 Steakhouse and the Sky Event Center in downtown Waterloo.

We are still recovering from the shock of learning from the media that 501 Steakhouse and Sky were closed. Upon learning of the closures we were further shocked to discover that Bourbon Street Restaurant, LLC and Darin Beck had already moved out of the spaces he leased in the middle of the night, without notice, leaving a mess of garbage and debris. It is important that we clear up some misconceptions. We had made many efforts to meet with Darin Beck to discuss a resolution to the issues between the parties. It was our hope that we could come to an amicable resolution to our disputes with Darin Beck. After many weeks of trying to get Darin Beck to meet with us to find out what could be done about the restaurant he finally agreed to a meeting at 10:30 AM Monday morning. Instead of a meeting he issued a press release at 9:30 AM announcing the closure of his operations at the Black's Building and never did show for the meeting.

Barmuda Corp. and Darin Beck issued a press release indicating that Midtown Development, LLC owed them over $800,000.00. Midtown Development and the Nelson family strongly disputes that any such amount is owed to Mr. Beck or his entities. It is the position of Midtown Development and the Nelson family that the expenses Darin Beck is seeking reimbursement for are his sole responsibility pursuant to the express terms of the lease between the parties. Actually, Bourbon Street Restaurant, LLC and its guarantor, Mr. Beck, have failed to make numerous rental payments since it began operations at the Black's Building and are currently delinquent to Midtown Development in excess of $250,000.00. Furthermore, Bourbon Street Restaurant, LLC and its guarantor, Mr. Beck, have breached their obligations pursuant to the terms of the lease.

Midtown Development and the Nelson family were extremely lenient with Mr. Beck and his entities in order to promote the development of downtown Waterloo and the Black's Building. Midtown Development and the Nelson family made a significant investment in the 501 Steakhouse and Sky Event Center in reliance upon the ongoing business relationship with Darin Beck. The Nelson family is saddened by the closure of the 501 Steakhouse and the Sky Event Center and by the baseless personal attacks that are being made by Darin Beck. The Nelson family extends it's sympathy to all the people that have been negatively impacted by Mr. Beck's decision to close his operations at the Black's Building. We are hopeful Mr. Beck follows through on his promise to promptly refund all deposits owed.

Midtown Development, LLC intends to pursue all legal remedies available to recover amounts owed to it by Bourbon Street Restaurant, LLC and Darin Beck.

Powered by Frankly