The Allen County Fort Wayne Capital Improvement Board of Managers – which oversees Grand Wayne Center – has settled a lawsuit with its caterer.
Grand Wayne Center has a contract with the Hilton Hotel to do business with that hotel’s catering company, a deal put in place 25 years ago when the hotel was built. But the deal appeared to allow no way for Grand Wayne Center to get out of that contract, and officials wanted to change caterers.
In 2011, they sued Servico, which currently operates the Hilton on Calhoun Street, asking an Allen Superior Court judge to allow the board to terminate the contract if it chooses.
Servico had asked that the deal not be changed.
Monday, the board approved a settlement in the case that lets the contract end if, as planned, the hotel and its catering business are sold.
The deal also includes terms of a new agreement with the company expected to be the new owners of the hotel catering business, Welcome Fort Wayne LLC.
There are no financial payments to be made under the settlement, other than payment for catering services provided, and each side will pay its own legal fees.
Board member Steve Brody said the contract probably made sense 25 years ago when it was included as an incentive to get a developer to build a hotel next to the convention center.