Mayor David Wortman announced at the outset of Monday’s Warren City Council meeting that the proposed Eagles Crest project is no longer under consideration.

The project aimed to develop a senior living facility on the corner of Liberty St. and Pennsylvania Ave.

He said that the developer, Hudson Group, has informed the city that “they will no longer be moving forward with the Eagle’s Crest project.”

Wortman said the city would be working to rewind agreements it has with Hudson and that “no further details are available to the present time.”

Times Observer photo by Josh Cotton Ron Peterson, one of five citizens who signed on to a federal lawsuit aimed at stopping the proposed senior living in downtown Warren, addressed Warren City Council Monday. Earlier in the meeting, Mayor David Wortman stated that the developer “will no longer be moving forward with the Eagle’s Crest project.”

According to online county assessment records, the city acquired the property back in 2009 and sold it to the developer in 2018. There was evidently a clause that the properties would revert to the city if the project was not completed on a certain timeline.

Back in July, council limited discussion on the project in light of a lawsuit filed in federal district court.

David Winans, Ron Peterson, Phil Caudill, Wendy McCain, who is a member of city council, and Kevin Sheldon filed a federal lawsuit in Western District Court against Adrianne Todman, acting secretary of the U.S. Housing and Urban Development department, and Rick Siger, secretary of the Pennsylvania Department of Community and Economic Development, as well as both officials’ agencies.

The suit sought to overturn the funding for the project, which would have demolished the existing buildings at 231-237 Pennsylvania Ave.

Wortman further addressed that decision to chill public comment on the project on Monday and alleged that McCain acted improperly on an agenda item related to the project.

He called the city an “interested party” that still has “legal contracts” with the developer.

At the June meeting, a proposal had been made to hire an outside consultant to review the project. The lawsuit had been filed earlier that day.

Wortman said that McCain made the motion to hire the consultant, which was rejected by council.

“This unfortunately is a clear conflict of interest for Councilwoman McCain,” Wortman said. “Being party to a lawsuit filed the same day, she should have recused herself and abstained.”

There was initially an item on Monday’s agenda that was to deal directly with the public comment issue. Councilman Maurice Cashman moved to strike it in light of Hudson’s announcement that the project was being pulled. McCain seconded that motion.

“Actually, you should not second that,” Solicitor Andrea Stapleford said, arguing that the item “absolutely is” about the Hudson project.

“We’ve had that discussion already,” Stapleford said to McCain. “(I) specifically explained to you… you cannot vote on any issues pertaining to that project.”

McCain countered by saying that Stapleford sent her a letter and did not have a conversation.

One of the parties to the lawsuit addressed council Monday.

“Well this is certainly good news,” Peterson said. “I hope we can work together going forward.”

He presented part of a letter from Winans that indicated there are drawings complete to restore the existing building.

“We’ve got some really great ideas,” Peterson said. “We’re ready to go.”