City of Greenville being sued 12-14-2010

LEGAL ACTION HAS BEEN TAKEN AGAINST THE CITY OF GREENVILLE BY A LOCAL COMMUNITY ACTION ORGANIZATION. THE MID-DELTA COMMUNITY CORP., FORMERLY KNOWN AS THE MID-DELTA EMPOWERMENT ALLIANCE, INC., IS SUING THE CITY OF GREENVILLE OVER A BREACHED AGREEMENT INVOLVING $300,000 IS FUNDS THAT HAS YET TO BE TURNED OVER TO THE COMMUNITY CORPORATION. THE LAWSUIT STEMS FROM AN AGREEMENT BETWEEN THE CORPORATION AND THE CITY DATING BACK TO 2000. THE ORGANIZATION ARGUES IT OFFERED SUB-GRANT FUNDS TO THE CITY TO RENOVATE AND REPAIR PROPERTIES AT THE MID-DELTA REGIONAL AIRPORT. THE GROUP ALSO SAYS THE CITY IS IN BREACH OF A LEASING AGREEMENT WITH SUPERIOR POWDER COATING, INC., WHERE RENT FUNDS WERE NOT PLACED INTO AN ESCROW ACCOUNT AS REQUIRED IN THE AGREEMENT. THE ORGANIZATION IS SEEKING DAMAGES AS WELL AS ANY FUNDS THE CITY MAY HAVE RECEIVED OVER TIME FROM THE LEASE AGREEMENT.