WICHITA, Kan. (KSNW) — A lawsuit has been filed by the City of Wichita against Genesis Health Clubs for failure to pay back the City for bonds that were issued for improvements to the Wichita Ice Center.
The lawsuit alleges that the City of Wichita financed $760,466 to Genesis Health Clubs to add a fitness center to the second floor of the Wichita Ice Center. Since then, Genesis only made the first payment of $14,127.65 back to the City in June 2017 and has paid nothing since.
The City of Wichita is attempting to recover over $424,000 for breach of contract.
According to court documents, in January 2012, the City of Wichita and Genesis entered into an agreement that allowed Genesis to manage the Ice Center. The agreement was a 10-year agreement, with a renewal option of five years, which would automatically be “exercised at the end of the initial term unless either party notified the other party in writing within ninety (90) days.”
The lawsuit says the City of Wichita gave notice to Genesis on Sept. 28, 2021, 118 days before the renewal date and 28 days before the deadline for either party to give notice.
Genesis accepted the City’s non-renewal of the management agreement, but they did not vacate the Ice Center until April 30, 2022, according to the lawsuit.
The management agreement says that Genesis will be free from future payments if the City decides not to renew the agreement. Therefore, the total amount the lawsuit says Genesis owes the City of Wichita is $424,491.97.