AUSTIN (KXAN) — The owners of Oilcan Harry’s, STS Warehouse, LLC, filed a lawsuit Wednesday against their new landlord, claiming they have not been given access to their new location at 219 W. Fourth St. (down the block from their current location) and that an HVAC system has not been installed in the building.
The move precedes a redevelopment of Fourth Street. A residential building will be built at Oilcan Harry’s current location.
STS signed its new lease on May 18. In it, the landlord was to install an HVAC system by July 1 and secure a change of use for the property to operate as a bar/nightclub. STS began hiring architects and consultants to design the new space.
However, the move has stalled.
According to the lawsuit, landlord Thomas C. Calhoon refused to give STS access. Allegedly, Calhoon told STS on Oct. 4 he has a pending sale of the land to LV Company, an Austin-based real estate investment firm, and he could not allow STS to do anything without LV’s approval.
In response, STS sent a formal demand letter on Oct. 11.
“Defendant refused to act and told Plaintiff that he will not approve anything requests related to the Lease Property unless David Kanne approves the request on behalf of LV Company,” the lawsuit reads.
LV responded to STS on Oct. 14.
“Counsel for LV Company asserted that Plaintiff is required to obtain approval prior to submitting a permit request but did not reference where the obligation in the Lease such obligation is,” the lawsuit reads.
KXAN reached out to Calhoon and LV Company for comment. LV responded, but Calhoon has not yet. We will update this story when we hear back.
LV responded with the following statement:
LV Collective does not currently own the space that Oil Can Harry’s occupies and can’t accommodate specific requests. We plan to purchase the property, are excited for the bar to occupy the space and fully intend to honor the lease.True Point Communications, on behalf of LV Collective
STS had asked LV to meet with counsel on Oct. 14, which LV asked to reschedule to Oct. 25. On Monday, LV allegedly told STS it would need another week to review. Both parties’ legal teams have not yet met.
“Despite several requests, neither Defendant nor LV Company has agreed to provide access to the Leased Property so that Plaintiff can fulfill its obligations under the Lease,” the lawsuit reads.
You can download the full lawsuit below.
The lawsuit, filed in Travis County Civil Court, accuses Calhoon of breaching the contract. It asks for the court to compel action and monetary relief of $1,000,000 for lost income and legal fees.