By Jeremy D. Wells
Carter County Times
The public comment period of Olive Hill city council’s regular meeting last week may have started with drama and confrontation, but the meeting ended with the promise of a resolution and the dropping of a lawsuit. That suit was filed against the city, the mayor, and the city’s building inspector by Tranquility Property Management, for reported delays on the issuance of necessary building permits.
The suit was filed on Monday, February 20, and the mayor and city were served on Tuesday, just prior to the city council meeting.
Olive Hill mayor Jerry Callihan told Brandon Hamilton, attorney for Tranquility Property Management, he had planned to discuss the problems with him that evening, and make sure the permits were issued immediately. But, he told Hamilton, because of the lawsuit he wasn’t comfortable discussing the issue with him in an open meeting.
Shawn Judd, one of the partners in Tranquility, also spoke during the public comment period, explaining that his company has had continual problems with getting the necessary permits to renovate a building they own at the intersection of Railroad and Scott streets. He said they first applied for the permit in the fall of last year, and that the permit was not for new construction, but for repair and maintenance of the building’s existing structure.
The lawsuit filed against the city states that a permit was first sought in “approximately September, 2022” from city building inspector Taylor Duncan. The lawsuit further states that “Tranquility… on numerous occasions between November 2022 and February 14, 2023 requested the subject building permit” from Duncan and the city.
It then goes on to state that Duncan informed the company on February 14 that he had completed and was ready to issue the permit, “but (the city)… or Defendant Callihan instructed him not to issue the said permit until the (company) attended and requested the same during the next City of Olive Hill council meeting.”
The lawsuit goes on to state, “Tranquility is not being treated equally and fairly… (and) is not being afforded due process.”
Judd’s lawsuit also claimed the delay in issuing the permit was motivated by a personal bias on the part of the mayor, stating “(it) is no secret that Defendant Callihan and one of the members of Tranquility have ill feelings toward each other,” and further alleging that Callihan has “by and through social media… made allegations blaming a decline in business for his family’s restaurant on parking issues allegedly created by A Center For Change… and/or Journey to Heal Corp.”
While Tranquility is a distinct and independent business, they do share common partners with A Center For Change. As a result, the lawsuit alleges, the city and mayor, “do not treat them as separate, independent entities.”
This was reflected in that fact that, according to Judd, when the building permit was finally issued it was issued to A Center For Change and not Tranquility.
Despite this, Judd says he plans to make good on his promise to drop the lawsuit if the city continues to act in good faith.
While Judd and Hamilton hinted at that possible resolution after discussing the pending litigation with the mayor and council in executive session last week, another partner in Tranquility confirmed on Wednesday morning that the permit had been issued – albeit to the wrong business entity – and the partners would be dropping their suit, “with the understanding that Tranquility and any other business is treated fairly.”
In other action council heard an update on the water treatment upgrades and approved the next disbursement payment to Trane for their work. Councilmen Kirk Wilburn and Eric Rayburn voted “no” on the disbursement, with all other council members voting aye.
Both Wilburn and Rayburn have expressed concerns about continuing to issue disbursement payments to the company while work on the project is stalled.
Council also adopted a resolution establishing an urban renewal and community development agency. Forming the agency also authorizes them to exercise eminent domain for purposes renewal and revitalization.
Council also discussed a plan to increase the cost of gas taps to reflect the increased costs to the city for replacements.
“Everything we’re using has tripled (in costs),” Callihan said, “but our rates haven’t.”
Contact the writer at editor@cartercountytimes.com
