CANTON, Ohio — The partnership between Johnson Controls and the Pro Football Hall of Fame Village in Canton appears to be coming to an end.
According to documents filed with the Securities and Exchange Commission (SEC), Johnson Controls sent two notices of termination to HOF Village Newco LLC, a subsidiary of the Hall of Fame Resort & Entertainment Company, last week. One called for the end of the technology agreement between the two sides, while the other sought to end the sponsorship and naming rights agreement. The Pro Football Hall of Fame Village has "been powered by" Johnson Controls since the two sides entered into an 18-year agreement in 2016.
Johnson Controls claims that Newco is in breach of its payment obligations for the technology and service agreement and has 'demanded all past due payments and other amounts owed,' totaling $4.75 million. It also accuses Newco of not providing 'satisfactory evidence' that it has secured the financing necessary to complete Phase II of the Hall of Fame Village.
The Hall of Fame Resort disputes Johnson Controls' claims, saying the company is in breach of the agreement. The resort plans to pursue 'dispute resolution.'
On Friday, Lisa Roy, who serves as a Vice President of Development for Johnson Controls, resigned as a member of the Hall of Fame Resort & Entertainment Company. Her term was not set to expire until 2024.
When the partnership between Johnson Controls and the Hall of Fame Village was first announced, plans called for the $600 million project to be completed in 2019. The entertainment venue was projected to bring $15.3 billion dollars in economic impact to the region in its first 25 years.
Watch the full interview with the President and CEO of the Hall of Fame Resort and Entertainment Company Michael Crawford below:
With the project stalled in 2018, Johnson Controls Hall of Fame Village hired former Disney executive Mike Crawford as CEO to take over. The first phase of the project (mostly involving renovations to Tom Benson Hall of Fame Stadium) has been completed, but delays have since hampered construction on additional facilities such as hotels, retail centers, and an amusement park.
Crawford recently appeared on the JMac Investing show on YouTube and was asked about his thoughts on the dispute with Johnson Controls.
"These long-term agreements, there's always bumps in the road," Crawford said. "We'll work through this with them. Johnson Controls has been a partner for multiple years. They are a high-quality company. Just like a marriage, you have bumpy roads, but you go through it."
You can watch Crawford's comments on Johnson Controls below (at approximately the 20-minute mark)
Previous Reporting:
- Canton's Hall of Fame Village preparing for sports betting
- Work continues at Canton's Pro Football Hall of Fame Village with enshrinement week one month away
- Pro Football Hall of Fame Village delays frustrate neighbors in Canton
- Pro Football Hall of Fame asking for tax help from Stark County for expansion project