ATLANTA - 200 Peachtree, formerly known as the Macy’s department store in downtown Atlanta, is being sued for misusing taxpayer funding.
A $12 million New Tax Credit mezzanine loan was issued to convert the old department store into 200 Peachtree which would utilize the space to create a major mixed-use retail and entertainment destination for Atlanta.
However, once leases were signed, owners and managers started to create oppressive work environments and violated their tenants' rights, according to DeBerry & Associates DBA, owner of Jon Ric Spa International.
According to the lawsuit, defendants stated the venues were not ready for occupants to move in that the owners neglected to provide basic features such as working sprinklers and working elevators.
DeBerry stated that they began the process of opening a luxury medspa but hit several obstacles that forced them to pay $300,000 to have plumbing fixed.
Along with those complaints, tenants expressed their concerns about the building not being up to code, specifically the American Disability Act (ADA) and fire codes.
One of the defendants claimed that the landlord responded to these concerns saying “there are enough healthy people walking around” and that defendants were “just looking for excuses.”
"We pay $30,000 a month only to have issues accessing the building," DeBerry told 11Alive.
One of the more serious issues was an elevator that was promised to tenants with a planned installation before opening day but this did not happen. The ‘elevator’ was more of a lift and it was not ADA approved.
Customers have gotten stuck on the lift “to the point where the fire department had to pry people out on several occasions”, according to the defendants. In fact, 11Alive's Latasha Givens also became stuck in the lift with DeBerry while visiting the location for this story.
On top of those flaws, the building allegedly has no proper escape plans in case of fire.
Defendants are also claiming landlords used “intimidation” to force tenants to focus on legal battles more so than their businesses.
“At this point, I am drowning in legal bills. I have spent all of my retirements funds to build my dream business and the landlord is trying to push me out," DeBerry said. "I am writing all of the entities who are associated with the landlord receiving funding to create a world-class center at 200 Peachtree to make you aware that this is not what has happened."
But she said they have not done right by the people in the building.
"We are all tax paying citizens and I just don’t think that the New Market Tax Credits, Central Atlanta Progress, or the Atlanta City Council intended for these funds to be used against the small businesses,” she said.
