The City of Lawrence filed a lawsuit against the developers of The Oread Hotel on Wednesday.
Last December, a city-ordered audit found The Oread Hotel filed incorrect sales tax returns to receive tax rebates from the city and county. The city commissioners unanimously voted Tuesday night, on behalf of the city, to take legal action against The Oread Hotel.
The city’s lawsuit against The Oread Hotel owner Thomas Fritzel and two of his companies alleges the developers requested reimbursements for sales tax returns that did not occur in the district. The Oread developers received nearly $500,000 of improper reimbursements from the city.
The city of Lawrence is seeking a refund of the improper reimbursements, plus interest.
The developers have three weeks to respond to allegations before a court date is set the city’s attorney Brad Russel said.
KUJH reached out to The Oread Hotel, but the owner has not yet responded to our message.