115-121 West Third Street

The owner of the building that housed the former Jamestown Brewing Company is facing foreclosure.

In a filing in Chautauqua County State Supreme Court on Thursday, May 19, Evans Bank issued a complaint against G Patti Enterprises LLC, George Patti, and the Chautauqua County Industrial Development Agency for failure to pay the mortgage on the building located at 115-121 West Third Street.

GPatti Enterprices LLC has a $1.5 million mortgage with Evans Bank that was executed on July 27, 2018. The complaint said it was determined on September 15, 2021 that following several events that would be considered a loan default, Evans Bank demanded the full re-payment of the loan in the amount of $1,522,913.90.

The foreclosure filing in Supreme Court seeks to get that loan repaid.

Evans Bank previously filed a lawsuit against G Patti Enterprises LLC, on June 11, 2021 claiming misappropriation of funds connected to the Jamestown Brewing project. That case was closed following a payment on the loan in question.

Evans Bank

The loan was secured by G Patti Enterprises by grant funds including the New York Main Street Program, Community Development Block Grants, Jamestown City’s Greenlining Program and Facade Grant.

Evans Bank accuses GPatti Enterprises of misappropriating those grant funds by disposing of them without “providing Evans Bank notice of receipt of the Grand Funds or otherwise receiving Evans Bank’s consent to dispose of the Grant Funds.”

According to the complaint, Five Star Bank is owed with interest $283,763 by Jamestown Brewing Company. Jon McLellan and Terri McLellan are named as the owners who are liable. A source says Five Star Bank is trying to collect secured collateral from the sale of properties in Chautauqua and Erie Counties by the McLellan’s.

It was rough going right from the start for Jamestown Brewing Company when they opened a year late in July 2019, and opened without a liquor license. The brewery closed for two months until that license was received, but ultimately closed in July 2020 due to the Pandemic.

A September 2018 image of the Jamestown Brewing Company from Google Maps.

JAMESTOWN – The owner of a building that houses a new brewery in downtown Jamestown is trying to evict the business for failing to keep up with rent.

GPatti Enterprises – owned by local developer George Patti – owns the building that houses the Jamestown Brewing Company (JBC) at the southeast corner of Third and Washington Streets. According to a petition filed in State Supreme Court in Erie County on Tuesday, GPatti is claiming it’s received less than 20 percent of four months worth of rent, dating back to Sept. 30, 2019.

The complaint says that JBC owes a total of $85,000, but has only paid $15,000 so far. It also says that the brewing company – which is co-owned by John McLellan Sr. and John McLellan Jr. – has been unable to pay various debts it owes various lenders. Under its lease agreement with the business, GPatti argues it has the right to evict the operation if it fails to pay rent owed after 10 days of its due date.

A hearing for the case is scheduled for Thursday, March 5, in Buffalo.

Meanwhile, the lawsuit is not the first one that’s been filed between GPatti and JBC. In December 2018, JBC filed a lawsuit against GPatti, claiming a Breach of Contract, Fraudulent Inducement, Fraudulent Misrepresentation, and Negligent Misrepresentation when it entered into a lease agreement in 2017. At the time of signing its lease, JBC claims GPatti had said work on the building would be completed in time for an April 2018 opening. However, numerous delays in construction – including an environmental abatement mandated by the state – pushed that opening date back for more than a year. As a result JBC felt GPatti was misleading when it provided the timeline for when the operation could open. It is suing GPatti for compensatory and punitive damages.

In April 2019 the court dismissed three of the claims, while the issue of breach of contract is still playing out in the court.

That case is currently in the discovery phase, with a deadline of April 30 for both sides to present their evidence. The next scheduled court date in that matter is a discovery compliance meeting set for July 10.

According to the Post-Journal, the total project cost for renovating the property and preparing it specifically for JBC was estimated at $3.84 million. Financing for the project included a $475,000 state Main Street grant that was awarded through the Regional Economic Development Council program in December 2015 and $830,000 from the Downtown Revitalization Initiative in 2017. The Jamestown Local Development Corporation has a $180,000 loan attached to the project. The IDA also offered tax abatements for the property.

The Jamestown Brewing Company has announced it will temporarily shut down until a New York state liquor license is received so operations could resume.

The restaurant – which is located at the building formerly known as the Lillian Vitanza Ney Renaissance Center at the corner of W. Third and Washington Streets – initially opened in mid July despite not having its license.

The business is owned and operated by the father-son partnership of John McClellan Sr.  and John McClellan Jr. of Buffalo. They are leasing the space from the building owner, G. Patti Enterprises, which received a portion of the $10 million Downtown Revitalization Initiative Grant to renovate the building.

Delays in that renovation effort has led to the McClellan’s suing G. Patti Enterprises for a breach of contract and that issue is still being played out in State Supreme Court in Erie County.

Meanwhile there is no word on when the State will finally grant to the liquor license, which is needed in order for JBC to not only serve alcoholic drinks but also begin brewing its own beer.

This year’s festival will feature over 60 artists and will be celebrating local, regional and international talent across several venues, including Jamestown Brewing Company, Winter Garden Plaza, Shawbucks, Jamestown Wine Cellar, Labyrinth Press Company,  the Reg Lenna Center for the Arts, and 3rd on 3rd Gallery. 

This year’s festivities include multi-genre musical performances by internationally touring bands, including the high energy reggae/funk rock of  Tropidelic, fresh off 311’s Caribbean Cruise. Other acts include After Funk, LeSpecial, Funktional Flow, Witty Tarbox, Company Townes, Space Junk, Qwister, Cold Lazarus, Wanyama, Vibe Supply, The LEC, Bill Ward, Cindy & the Loves, Amanda Lynn’s Shenanigans, Smilo & the Ghost, Phantasm, Feverhawk, Trip the Deuce and the special reunion show of Jamestown’s The Audience – plus many more.

Whirlybird 2019’s comedy program will be headlined by Steven Rogers. Known for his clever, clean and hilarious comedy, Steven recently appeared on The Late Show with Steven Colbert and regularly opens for Brian Regan. Local comedy team Karate Sleepover will feature a regional comedy showcase and open for Steven along with Buffalo’s up and comer Jesse Winterhalter.

Whirlybird 2019 features a FREE, all age and family friendly Street Festival taking place on 3rd street between Main Street and City Hall as well as Winter Garden Plaza, Saturday July 20 from 10 a.m. to 7 p.m. The Whirlybird Street Fest will feature four outdoor stages, 25 musical acts, the Jamestown Public Market Farmer’s Market, love painting, carving and crafting, arts and craft vendors, a beer garden, local food, kids activities, a hooping workshop and more.

According to organizer Miki Girts, Whirlybird’s mission is to strengthen the thriving creative culture of Jamestown, New York through organization and inspiration.

“Whirly brings out the best in our city in collaboration with a community of incredible people, local organizations, venues and businesses for a good cause and a great time,” Girts said.

Along with spearheading a summer music program at YMCA Camp Onyahsa, Whirlybird is also partnering with local arts events including Third Thursday at Winter Garden Plaza, Karate Sleepover Open Mic, Wine Cellar Open Mic and Pulse Poetry Slam, and Jamestown Public Market.

Whirlybird 2018 succeeded in raising and donating over one thousand dollars to local non-profit youth organizations. Whirlybird 2019 is aiming to double that donation to raise funds for the Jamestown Skate Park Project & YMCA Camp Onyahsa music and scholarship programs.

For more information, including the complete schedule of events, visit www.whirlybirdmusicfestival.com.

A post by the Jamestown Brewing Company on its Facebook Page announcing its opening on July 12

JAMESTOWN – The Jamestown Brewing Company in downtown Jamestown will be opening for business on Friday, July 12.  The company made the announcement this past Friday on its Facebook page.

The brewery was originally planned to be opened in the the Spring of 2018 but several unforeseen delays in renovation of the property on the southeast corner of W. Third and Washington streets kept pushing the opening date back.

In recent months construction has been slowed by litigation between the developers of the brewery and the property owners and redeveloper GPatti Enterprises. That matter is still playing out in State Supreme Court in Erie County.

According to the Post-Journal, the total project cost for renovating the property and preparing it specifically for Jamestown Brewing was estimated at $3.84 million. Financing for the project included a $1 million in funding from the Downtown Revitalization Initiative Grant the city received in 2017, plus $475,000 state Main Street grant that was awarded through the Regional Economic Development Council program in December 2015. The Jamestown Local Development Corporation has a $180,000 loan attached to the project. The Chautauqua County Industrial Development Agency also offered tax abatements for the property.

Once open the business is expected to employ between 30 and 40 people. The restaurant will seat 280 guests in five different areas.

Recent filings in State Supreme Court in Erie County show that GPatti Enterprises is asking the court for compensatory damages as a result of alleged breaches of the lease agreement by Jamestown Brewing, along with costs, disbursements, interest and fees.

The counterclaim was port of a response the attorneys for GPatti Enterprises filed related to a lawsuit brought forward by Jamestown Brewing Company claiming a breach of contract between the two parties. Three other claims from the business against the building owner were recently dismissed by the court.

The lawsuit was filed by brewery owners in December 2018 after numerous delays in construction on the building resulted in the business still failing to open at the originally scheduled time of Spring 2018.

Attorneys for the entities will be in court again in mid-June as the case proceeds.

Meanwhile, there is no word on when the business may open, although it has finally received a certificate of occupancy from the city.
According to the Post-Journal, the total project cost for renovating the property and preparing it specifically for the Jamestown Brewing business was estimated at $3.84 million. Financing for the project included a $1 million in funding from the Downtown Revitalization Initiative Grant the city received in 2017, plus $475,000 state Main Street grant that was awarded through the Regional Economic Development Council program in December 2015. The Jamestown Local Development Corporation has a $180,000 loan attached to the project. The County IDA also offered tax abatements for the property.

Once open the business is expected to employ between 30 and 40 people. The restaurant will seat 280 guests in five different areas

On Wednesday, April 17 Erie County Supreme Court Judge Timothy Walker ruled to dismiss a portion of a lawsuit filed in December by the owners of the Jamestown Brewing that claim their landlord and property developer – G. Patti Development – committed fraud when courting the business to enter into a lease agreement to rent out the former Lillian Ney Renaissance Center building (AKA Grant Building)  at the corner of W. Third and Washington Streets.

Jamestown Brewing owners John McLellan Sr. and John McLellan Jr. had filed a lawsuit against GPatti after continued delays prevented them from opening their operation as scheduled. While the business was initially slated to open in the spring of 2018, it saw numerous construction and development delays and has yet to open its doors.

The McClellan’s are suing GPatti, claiming it wasn’t fully transparent in regards to the work that was needed to prepare the site, nor regarding communicating some environmental work that was required before the site would be ready. As a result, Jamestown Brewing was asking for compensatory damages, punitive damages, interest, attorneys fees and costs based on the alleged misrepresentations.

At the request of GPatti Development, Judge Walker dismissed those claims.

But the judge also denied a motion request by G. Patti Inc to dismiss a breach of contract claim from Jamestown Brewing that dealt with the spending of $1 million in state money from the Downtown Revitalization Initiative (DRI) fund. Jamestown Brewing claims GPatti misappropriated that money, leading to the breach of contract.

Judge Walker said he first wants to see a breakdown of how state that DRI money was spent on the Jamestown Brewing project before ruling on that matter. That review won’t take place until the project is completed because state economic development money typically isn’t released until a project is finished.

According to the Post-Journal, the total project cost for renovating the property and preparing it specifically for the Jamestown Brewing business was estimated at $3.84 million. Financing for the project included a $475,000 state Main Street grant that was awarded through the Regional Economic Development Council program in December 2015. The Jamestown Local Development Corporation has a $180,000 loan attached to the project. The IDA also offered tax abatements for the property.

There still is no word on when the brewery will open.  Once open the business is expected to employ between 30 and 40 people. The restaurant will seat 280 guests in five different areas.

The day after WRFA reported the civil suit filed by the JBC against GPatti Enterprises, GPatti sent out a press release/statement from its legal counsel – Rupp Baase Pfalzgraf Cunningham LLC – to local media vehemently denying any wrongdoing in the multi-million dollar effort to prepare the building for the brewery operation.

GPatti, owned and operated by George Patti of Jamestown, is the owner of the former Lillian V. Ney Renaissance Center (and previously known as the Grant Building) on the corner of Washington and W. Third Streets in Jamestown. The operation is renovating and leasing the property to JBC, owned and operated by Jon McLellan Sr. and Jon McLellan Jr. from Buffalo.

In December JBC filed a civil complaint in New York State Supreme Court – Erie County claiming GPatti failed to live up to its end of its lease agreement to have the building prepared for a grand opening by April 2018. Instead, several environmental setbacks have resulted in the operation still not being open – with a new date set for mid March of this year.

“If JBC had been made aware of the environmental issues in a timely fashion, it would not have entered into the lease agreement with GPatti,” the lawsuit contends

In its response to the lawsuit, the statement from Rupp Baase Pfalzgraf Cunningham said GPatti was disappointed to learn of the legal action by its tenants and it would have preferred the brewery work with it to resolve any issues or concerns, rather than filing a lawsuit. The statement also said that JBC was aware of the potential for delays and took on that business risk as part of its lease, adding that the business was made aware of the progress of the work at all times.

And it said that if the lawsuit does move forward, GPatti will vigorously defend against the allegations, and it will assert claims of its own.

JBC is being represented by Ryan Cummings from the Buffalo law firm Hodgson Russ.

He told WRFA via email on Tuesday that the lawsuit was only filed after JBC tried unsuccessfully for months to resolve its issues with GPatti privately.

“The delays discussed in the complaint have presented challenges to Jamestown Brewing Co. and those challenges continue to mount,” Cummins said.

The brewery is seeking damages in excess of a million dollars as a result of the project being 11 months behind schedule.

Cummins also said despite the lawsuit, the brewery continues to work diligently to open the restaurant and brewery.

According to the Post-Journal, the total project cost for renovating the property and preparing it specifically for the JBC business was estimated at $3.84 million. Financing for the project included a $475,000 state Main Street grant that was awarded through the Regional Economic Development Council program in December 2015. The Jamestown Local Development Corporation has a $180,000 loan attached to the project. The IDA also offered tax abatements for the property.

Last week City Development Director Vince DeJoy said JBC was expecting to open in mid-March.  Once open the business is expected to employ between 30 and 40 people. The restaurant will seat 280 guests in five different areas.