A $3.5 million Cleveland Flats redevelopment grant is now at the center of a federal lawsuit after Ohio lawmakers pulled the money during Bobby George’s criminal case. George’s business group says the Statehouse torpedoed a signed agreement and singled out the project for political reasons.
Ohio River Investments, which includes George Management, sued Senate President Rob McColley, House Speaker Matt Huffman, Office of Budget and Management Director Kim Murnieks and GOP spokesperson John Fortney, according to News 5 Cleveland. The complaint alleges breach of contract, due-process violations and seven other counts, while the Senate majority office called the case a political stunt.
A Grant Tied To A Larger Flats Makeover
The grant was part of Ohio’s One-Time Strategic Community Investment Fund, a 2024 economic-development package that included $3.5 million for the Flats River Development. An Ohio House release described the allocation as part of a broader Cuyahoga County investment plan.
The proposed Old River project called for rehabilitating part of the East Bank with apartments, restaurants and nightlife. The lawsuit says the development was projected to create 200 jobs and generate about $1.5 million in annual tax revenue, but the state never disbursed the grant.
The State Pulled The Money During George’s Criminal Case
Ohio River Investments signed a contract with OBM in August 2024, roughly a week before George was arrested, according to the lawsuit. At the time, George faced nine felony charges, including attempted murder, rape, kidnapping and strangulation; Signal Cleveland reported that the case prompted the appointment of a special prosecutor.
The most serious charges were later dropped, and George pleaded guilty in November 2025 to felony attempted strangulation. He avoided jail time under the plea agreement, as reported by News 5 Cleveland.
Lawmakers then used the 2025 transportation budget, House Bill 54, to revoke the grant before it was paid. The bill is listed by the Ohio Legislature, while GovTech reported that the measure specifically rescinded the $3.5 million award for George’s Cleveland project.
The Contract Question Is Now The Main Event
McColley said the state brought the money back because it had not yet gone out and lawmakers believed that was the better decision. The lawsuit argues that legislators unilaterally nullified the contract based on allegations against George, who was not personally named as the grant recipient.
Retired Case Western Reserve University law professor Jonathan Entin told News 5 Cleveland that legislatures typically lack a formal process for making the factual findings involved in pulling a grant, though he said the case will ultimately depend on the contract’s terms. For Cleveland’s East Bank, the legal fight now decides whether a signed redevelopment promise can survive the political fallout surrounding the developer behind it.
