BENTON - Royal Banks of Missouri and Oblate Shrines and Renewal Centers of Belleville claim Belleville breached its contract to subsidize four hotels and other attractions across from Shrine of the Snows.
They sued the city at U.S. district court on May 14 claiming it chased investors away with false communications that a development agreement from 2015 was no longer in effect.
Royal Banks counsel Michael Campbell alleges “loss of business on account of the unwillingness of developers to submit proposals.”
He claims the effects of the breaches have been catastrophic, “and the development is currently at a standstill.”
He claims the banks loaned more than $20 million to primary developer Missionary Ventures.
He identified owners of Missionary Ventures as Charles Keller, Keidrah McWhorter, Chris Keller, Chane Keller, Che Keller, Chase Keller and Courtney Keller.
He also represents Richard Striler as receiver for Missionary Ventures.
He claims Missionary Ventures entered a ground lease as tenant with Oblate Shrines as landlord in 2014.
He claims Belleville’s mayor and council adopted ordinances approving a development agreement and a tax increment allocation in 2015.
He claims the tax incentives have primarily come from loans and advances of Royal Banks which made them in reliance on the agreement.
“The city merely serves as the repository for such tax incentives," he wrote.
He claims Missionary Ventures built the Hofbrauhaus restaurant which operated from 2018 to 2023 and generated substantial tax revenues.
He claims the city held at least $748,100 in tax incentives as of last November.
The plan called for an upscale hotel with 130 rooms, an extended stay hotel with 90 rooms, and upper midscale hotels with 118 and 100 rooms.
It called for a conference center with 30,000 square feet, Hofbrauhaus and other upscale restaurants, and a gas and convenience store.
Campbell claims Royal Banks and Striler communicated with many prospects including developers of hotels, restaurants and general commerce.
He claims they all expressed interest but the city told them the development agreement was no longer in effect because the developer defaulted.
“These statements were false,' he wrote.
Donald Schoemaker of O’Fallon represents Oblate Shrines.
The clerk randomly assigned Senior District Judge Phil Gilbert.