WARREN — The owner of the former Delphi Packard Electric plant is suing Auto Parkit for $2.5 million for breach of contract.

Sergio DiPaolo, whose Maximus III Properties LLC owns the combined 320,000-square foot administration building and plant at 408 Dana St., states in the lawsuit that Dorian Capital Investments Inc., representing Auto Parkit, has been leasing the property since February 2016. The initial lease was for $75,000.

Auto Parkit, which is owned by Warren native Christopher Alan, agreed to purchase the property for $1.75 million.

Since that time, in spite of numerous requests, representatives of Maximus III Properties LLC have not been able to go onto the property to obtain what belongs to them, according to the lawsuit. Because of its inability to obtain its property, Maximus III Properties LLC is claiming $2.5 million worth of damages.

The lawsuit, filed by Michael A. Partlow of Partlow Law Firm of Kent, claims that Dorian Capital is required to make sure the property is rehabilitated to the point that it would pass all pertinent environmental laws that Maximus, the owner, would be required to achieve.

The lawsuit claims that during its time at the plant, Dorian Capital failed to obtain various required licenses for its contractors; failed to set up a workers’ compensation account; failed to provide a copy of liability insurance; failed to obtain demolition permits; and failed to place proper fencing, which allowed mud to run into the sewer system. It also removed lead and asbestos paint without obtaining proper Ohio EPA permits, the lawsuit states.

The company did not permit an environmental expert hired by Maximus to inspect the premises to determine the full extent of existing violations prior to work being done.

Alan, as of Friday afternoon, said he has not been served with the lawsuit, but everything that has been alleged against his company is false.

“He is living in a fantasy,” Alan said. “He is supposed to provide a free and clear title to the property, so a purchase can be made. He misrepresented the title was clear. The contract he signed with us required notification about any potential litigation.”

“The property is being foreclosed on,” Alan said. “He never notified us of the tax foreclosure.”

Alan said DiPaolo was asked to remove debris from the property and was given numerous opportunities to remove it, but has not done so.

“He is in default of the contract for not removing the debris, in spite of having access to the property,” Alan said. “I still have copies of text messages he sent that threatened me for messages we were sending about his responsibility to remove debris.”

“He was given notice on multiple occasions,” Alan said.

Auto Parkit is still paying for the lease of the property and has a half dozen engineers working in the improved areas of the plant.

“When we first arrived there and made the official announcement of our intentions, there was not electricity, fiber optics, gas or water on the plant,” Alan said. “There are areas in which all of these have been placed and the building has been significantly improved.”

Alan claims it has been DiPaolo that has held up Auto Parkit’s efforts to purchase the property for nearly two years.

“We have made our payments based on the contract we signed,” Alan said.

He announced in early May that negotiations between Auto Parkit and Maximus III Properties LLC had not been moving forward, so his group found and purchased the former General Electric building, 310 Dana St. NE, which is across the street from the Delphi plant building.

The former GE building is about 100,000-square feet. Alan said he would need to build a second location to do the actual manufacturing for some of the parts for the automated parking facilities

At the time, Alan said the two sides had not met since August.

rsmith@tribtoday.com