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Local business owner presses St. Clair to release escrow funds tied to 2018 agreement
Summary
A public commenter told the board the city is withholding escrowed funds he says were agreed upon in 2018 and challenged the city to accept payroll and email records; city staff responded that counsel will not release funds until the contract's burden of proof is satisfied and urged the owner to submit full documentation for review.
During public comment at the Feb. 2 St. Clair Board of Aldermen meeting, a business representative identified as Gary urged the city to release escrowed funds he said were owed under a 2018 agreement and ordinance.
Gary said the business built a sizable facility in the city, employed 60–80 full-time workers plus part-time staff, and that the parties had previously agreed on closing terms and earnest money. He said the city later withheld $10,000 from escrow and that emails and signed documents exist showing the original terms. "We put a lot in this community ... Got $100,000 of our money. I don't understand why it's a struggle to get it back," Gary said.
City staff responded that they had reviewed two payrolls but that the contract requires proof across the covered period. Administrator Wilson and city counsel (referred to as Attorney Boss) told Gary the city would review whatever payroll and supporting documentation he provides and that the attorney will not release escrow funds until the burden of proof in the contract is met. Wilson outlined the procedural path: staff and counsel will review submitted documentation, then the board would be advised whether the burden of proof was met and would vote on releasing funds.
Wilson said the city wants to cooperate but must follow the contract and legal advice. "If you provide the documentation, the documentation would be reviewed by myself, by attorney Boss, and then we would go to this board and tell them whether or not it meets the burden of proof and then they would vote on whether or not it met the burden of proof," he said.
Gary said he would provide the records and offered to meet with staff. City staff provided contact information and invited him to submit the documents for review.
No formal action was taken during the meeting; staff requested the claimant supply the requested documentation to begin the review process.
