The ambitious but embattled Studio West 117 project continues to face hurdles both cultural and financial as founders Daniel Budish and Betsy Figgie last year defaulted on loans totalling more than $9 million from Truist Bank.
A Geauga County judge late in 2023 issued a judgment lien after they missed payments — which they acknowledged in court filings.
"In December we entered into a thoughtful and comprehensive forbearance agreement which is allowing us time to recapitalize the debt," Figgie told Scene in a statement.
The news was first reported by Signal Cleveland.
Budish told Signal, without going into details, that there are plans, approved by the bank, to refinance Studio West 117 “into a social enterprise structure by the end of the year.”
Studio West opened its first phase of a multi-year plan in October 2022 with a 300,000 square-foot facility that included restaurants, a bar, a gym, and rentable retail spots that would be leased to LGBTQ+ business owners.
A second phase, slated for 2025, would include a complete renovation of the Phantasy Theater along with a new entertainment spaces. A third phase, also slated for 2025, would see 100 new apartment units constructed. Initial plans also called for senior living for LGBTQ+ residents and a hotel.
It has faced criticism in the community and from former employees, as detailed by Scene and the Buckeye Flame in 2023, for its culture, business practices, leadership and relationship with the original foundation created in tandem with the project.
“We took a huge risk on our community and embarked on something that has never been done before to help provide an affirming and welcoming space for our LGBTQ+ community,” Budish continued in a statement to Signal. “Since the very beginning we have faced large headwinds, from the legislative attacks on the LGBTQ+ community in Ohio, to Covid and its effect on the bar and restaurant industry, to the macroeconomic construction and real estate environment from rising construction costs, supply chain delays and straight into interest rate increases.”
Subscribe to Cleveland Scene newsletters.
Follow us: Apple News | Google News | NewsBreak | Reddit | Instagram | Facebook | Twitter | Or sign up for our RSS Feed
Studio West 117 Defaulted on $9 Million in Loans
Daniel Budish and Betsy Figgie were sued by Truist Bank for missing payments. They're now "recapitalizing debt" after a forebearance agreement
SCENE Supporters make it possible to tell the Cleveland stories you won’t find elsewhere.
Become a supporter today.
About The Author
Vince Grzegorek
Vince Grzegorek has been with Scene since 2007 and editor-in-chief since 2012. He previously worked at Discount Drug Mart and Texas Roadhouse.
Scroll to read more Cleveland News articles
© 2024 Cleveland Scene
