Ludington council to consider options prior to mediation with Andys Restaurant owner

AndyS Restaurant on the southeast corner of Ludington and Rath avenues.

By Rob Alway, Editor-in-Chief

LUDINGTON — Ludington City Council will meet in closed session today to discuss legal strategy related to a lawsuit filed by a local business owner over a halted downtown construction project.

The special meeting is scheduled for 4 p.m. and comes ahead of a mediation session planned later this week in the case of ASR Real Estate LLC v. City of Ludington.

The city is being sued by ASR Real Estate LLC, owned by Dr. Andy Riemer, in connection with a stop-work order issued in August 2025 on construction of Andy’s Restaurant, 129 W. Ludington Ave. The order was issued just weeks before completion of the approximately $10 million project.

At issue is the placement of structural support pillars for a sidewalk overhang along Rath Avenue. City officials contended the pillars encroached too closely to the curb, raising safety and right-of-way concerns. Attorneys for ASR Real Estate have argued the project had received prior approvals and that the city’s action was arbitrary and inconsistent with earlier guidance.

In March, Judge Eric R. Fox, in Mason County’s 51st Circuit Court, granted a preliminary injunction in favor of ASR Real Estate, ruling the stop-work order should be rescinded. The decision allowed construction to resume while the underlying lawsuit proceeds.

According to court filings and prior testimony, the lawsuit alleges the city’s actions caused significant financial damages, including construction delays, lost revenue and increased costs. Testimony presented in court indicated the project was losing an estimated $100,000 per month while work was halted. The complaint also seeks damages related to lost business opportunities and reputational harm.

The City Council agenda cites Section 8(1)(e) of the Michigan Open Meetings Act, which allows a closed session to consult with an attorney regarding trial or settlement strategy in connection with pending litigation, as well as Section 8(1)(h), which permits discussion of attorney-client privileged communications.

While the council may deliberate in closed session, any formal action must be taken in open session.

The closed session is being held in advance of a scheduled mediation session later this week, where both parties are expected to attempt to reach a resolution in the case.

As previously reported, the lawsuit filed by ASR Real Estate alleges the city’s enforcement of the stop-work order was improper and resulted in substantial financial harm while delaying the anticipated economic impact of the restaurant development.

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Read the previous story here.

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