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STATE OF MICHIGAN IN THE WAYNE COUNTY CIRCUIT COURT

BAGLEY LIQUIDATION COMPANY, LLC, a Michigan Limited Liability Company, and ANTHONY V. PIERONI,

Plaintiffs vs.

BRIAN HOLDWICK, and DETROIT ECONOMIC GROWTH CORPORATION, a Michigan Non-Profit Corporation,

Defendants

Case No.

Hon.

/ Hugh M. Davis (P12555) Cynthia Heenan (P53664) Scott M. Mackela (P74206) Constitutional Litigation Associates, PC Attorneys for Plaintiff 450 W. Fort St., Ste. 200 Detroit, MI 48226 (313) 961-2255/Fax: (313) 922-5130 Davis@ConLitPC.com Heenan@ConLitPC.com Mackela@ConLitPC.com

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There is no other pending or resolved civil action arising out of the transaction or occurrence alleged

in this complaint.

COMPLAINT AN DEMAND FOR JURY TRIAL

FILED IN MY OFFICEWAYNE COUNTY CLERK

6/22/2015 4:27:02 PMCATHY M. GARRETT

15-008189-NO

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NOW COME Plaintiffs, TRIPLE-A VENTURE, LLC, BAGLEY LIQUIDATION

COMPANY, LLC, and ANTHONY V. PIERONI, by and through their attorneys,

CONSTITUTIONAL LITIGATION ASSOCIATES, P.C., and in support of their complaint,

state as follows:

PARTIES, JURISDICTION, AND VENUE

1. Plaintiff Bagley Liquidation Company, LLC, is a Michigan Limited Liability

Company with its principal place of business in Detroit, Michigan, and is the successor-in-

interest to certain rights of Bagley Acquisition Corporation (hereafter, BAC), which was at all

relevant times, the owner of real property described as 220 Bagley (and until April 2014, was

also the owner of 139 Bagley), located in the City of Detroit, Wayne County, Michigan.

2. Plaintiff Anthony V. Pieroni was, at all relevant times, Managing Partner of

Triple-A Venture, LLC and President of BAC. Pieroni was one of two shareholders in BAC, the

other being Michigan, Bagley, and Detroit, LLC (hereafter, MBD), which has assigned its

interest in this suit to Pieroni.

3. Defendant Detroit Economic Growth Corporation (hereafter, DEGC) is a

Michigan Non-Profit Corporation with its principal place of business in Detroit, Michigan.

4. Defendant Brian J. Holdwick was, at all relevant times, the Executive Vice-

President in charge of business development and financial services at DEGC.

5. The acts complained of occurred in Wayne County, Michigan.

6. The amount in controversy exceeds $25,000, exclusive of costs, interest, and

attorney fees.

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FACTUAL ALLEGATIONS

7. Plaintiffs incorporate by reference the preceding paragraphs of this Complaint as

if fully restated herein.

8. On or about March 24, 2014, the City of Detroit, Village Green Holdings,

Jonathan Holtzman (the Chief Executive Officer (and, upon information and belief, 50% owner)

of Village Green) and Defendant DEGC jointly announced an agreement to develop new

residential real-estate development (hereafter, the VG Development), to be located on a city

block on which the former Detroit Statler Hotel once stood (hereafter, the Statler Block),

bounded by Park Avenue to the east, Clifford Street to the west, Washington Boulevard to the

south, and Bagley Avenue to the north.

9. Plans for the VG Development showed it occupying the entire Statler Block, all of

which (with the exception of the 139 Bagley property) was owned by the City of Detroit and

which the City and/or DEGC had agreed to sell to Village Green for $1.

10. Significantly, the plan drawings also showed the development occupying the

property known as 139 Bagley, which was and is owned by Triple-A Venture, LLC, even though

nobody had notified or consulted with Triple-A before announcing the plan to build on its land.

11. On or about March 1, 2014, Village Green (through Holtzman and/or David

Friedman) made a proposal to Pieroni for the acquisition of the 139 Bagley property, but did not

state the purpose of the offer or Village Greens intended use of the property. It was not a good-

faith proposal.

12. Subsequent negotiations broke down when Village Green offered $1 million and

Triple-A refused to accept less than $3 million. Holtzman intimated to Pieroni that he would get

the City to force Triple-A to tear down the 139 Bagley building at Triple-As expense.

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13. Triple-A, through Pieroni, contacted Defendant Holdwick to discuss Triple-As

willingness to cooperate in the development of the VG Development or others proposed for the

Statler Block.

14. Pieroni, Holdwick, and two others met at the DEGC offices on April 30, 2014.

They discussed the Village Green project and Pieroni advised Holdwick of his prior discussion

with Holtzman and again offered to cooperate if the compensation was satisfactory. Pieroni

stated that Holtzmans offer of $1 million for 139 Bagley was unacceptable and that Holtzman

had threatened to have the City compel Triple-A to demolish the five-story building on the 139

Bagley site.

15. In response, Defendant Holdwick simply told Pieroni that Triple-As asking price

for the 139 Bagley property was too high and that he should accept Village Greens offer.

Holdwick then told Pieroni that if Triple-A did not accept Village Greens offer, the DEGC

would not extend ordinary benefits, credits, approvals, and licenses to the purchaser of the

Michigan Building, located at 220 Bagley and owned by BAC, Plaintiff Bagley Liquidations

predecessor-in-interest.

16. Holdwick knew that Pieroni was contemporaneously attempting to sell the stock

of BAC, the sole asset of which was the Michigan Building, to a developer for conversion to

apartments, which was the only economically viable use for that property.

17. The threat that the benefits, credits, approvals and licenses ordinarily extended by

the DEGC to purchasers of other commercial properties in the City of Detroit would not be

extended to the purchaser of the Michigan Building would have to be disclosed to any potential

purchaser of that property, and the unavailability of said benefits, credits, approvals, and licenses

would significantly reduce the value of the property.

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18. Pieroni and MBD ultimately sold their stock in BAC (the owner of the Michigan

Building) to a different developer at a significantly lower price, on the understanding that a

conversion to apartments would simply not be economically feasible without the benefits

ordinarily extended by the DEGC. That the propertys primary use would therefore remain

office space and parking.

COUNT I EXTORTION

19. Plaintiffs incorporate by reference the preceding paragraphs of this Complaint as

if fully restated herein.

20. After Holtzman threatened Pieroni and Triple-A, Pieroni conferred with the

DEGC, through its employee, Holdwick. However, Holdwick instead threatened Pieroni and

Bagley Liquidations predecessor-in-interest orally, stating that DEGC would withhold ordinary

benefits, credits, approvals, and licenses to any prospective purchaser of the Michigan Building

unless Triple-A agreed to sell the 139 Bagley property to Village Green for the price offered by

Village Green. This threat was made during the meeting on April 30, 2014, in front of two other

witnesses.

21. At the time Holdwick made this threat, he knew that Pieroni was attempting to

sell the Michigan Building to a developer for conversion to apartments and that such a

development would not be economically feasible without the benefits, credits, approvals, and

licenses ordinarily extended by the DEGC.

22. At the time Holdwick made this threat, he knew that converting the Michigan

Building to apartments was the highest and best use of the property. Conversely, he knew that

denying a prospective purchaser the ability to convert the Michigan Building to apartments

would significantly diminish the value of the property.

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23. Thus, Holdwicks threat caused injury to the property belonging to BAC, Bagley

Liquidations predecessor-in-interest, inasmuch as Pieroni was obligated to disclose the

existence of the threat to any potential purchaser, which significantly reduced the value of the

property.

24. Holdwick made the threat with the intent and purpose to compel Triple-A, against

its will, to sell the 139 Bagley property to Village Green for the amount offered by Village

Greena price that was far less than what Triple-A was otherwise willing to accept.

25. Holdwicks threat directly and proximately caused a significant loss to BAC,

Plaintiff Bagley Liquidations predecessor-in-interest, and its shareholders inasmuch as BAC

was required to disclose the existence of the threat and ultimately to sell its shares in the

Michigan Building at a much lower price for continued use as office space, rather than for

conversion to residential apartments.

WHEREFORE, Plaintiffs pray for judgment against Defendants Holdwick and DEGC

for damages, compensatory and exemplary, in an amount in excess of $25,000, or in

whatever amount this Court deems just and equitable, including costs, interest, and attorney

fees so wrongfully incurred.

Respectfully submitted,

__/s/ Hugh M. Davis________________

Hugh M. Davis (P12555) Constitutional Litigation Associates, PC Attorney for Plaintiffs 450 W. Fort St., Ste. 200 Detroit, MI 48226 (313) 961-2255/Fax: (313) 922-5130 Davis@ConLitPC.Com

Dated: 6/22/15

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STATE OF MICHIGAN IN THE WAYNE COUNTY CIRCUIT COURT

TRIPLE-A VENTURE, LLC, a Michigan Limited Liability Co, BAGLEY LIQUIDATION COMPANY, LLC,a Michigan Limited Liability Company, and ANTHONY V. PIERONI,

Plaintiffs vs.

BRIAN HOLDWICK, DETROIT ECONOMIC GROWTH CORPORATION, a Michigan Non-Profit Corporation, JONATHAN HOLTZMAN, and VILLAGE GREEN HOLDING, LLC, a Michigan Limited Liability Company,

Defendants

Case No.

Hon.

/ DEMAND FOR JURY TRIAL

NOW COME the above-named Plaintiffs, by and through their attorneys,

CONSTITUTIONAL LITIGATION ASSOCIATES, P.C., and hereby demand a trial by jury in

the above-captioned matter.

Respectfully submitted,

__/s/ Hugh M. Davis________________

Hugh M. Davis (P12555) Constitutional Litigation Associates, PC Attorney for Plaintiffs 450 W. Fort St., Ste. 200 Detroit, MI 48226 (313) 961-2255/Fax: (313) 922-5130 Davis@ConLitPC.Com

Dated: 6/22/15 F:\Cases\Pieroni, Tony\15-005 (RICO)\Pldgs\Extortion Complt Final (2015-06-22).docx