The city of Johnston has filed a lawsuit against the developer of a proposed youth sports and recreation complex, claiming they defaulted on the development agreement they had with the city.

The city filed the lawsuit after Ignit Johnston LLC, the group behind the proposed development on 30 acres north of Interstate Highway 80/35 on the west side of Merle Hay Road, failed to pay $3.8 million in grants and fees associated with the project.

According to the lawsuit, filed Friday, March 13, in Polk County District Court, Ignit failed to complete one or more predevelopment obligations, triggering the city’s “rights and remedies” as outlined in the development agreement.

Chad O’Meara, co-founder of Ignit Johnston LLC, did not immediately respond to a request for comment.

The lawsuit is the latest in legal problems for Ignit Johnston LLC.

Last fall, Waterloo-based Lincoln Savings Bank filed foreclosure against Ignit Johnston LLC, claiming the developer’s mortgage with the bank was in default. According to the petition, filed Nov. 7 in Polk County District Court, the developer owed more than $3.56 million as of Oct. 23, plus more than $1,600 per day in accruing interest.

According to online court records, a non-jury trial in the mortgage case was scheduled to begin Monday in Polk County District Court.

Online court records also show that two investors in the project filed lawsuits in January against Ignit Johnston LLC alleging the developer is in default of promissory notes they signed with the investors.

In those petitions, investors say they invested $50,000 each and signed a promissory note with Ignit Johnston LLC. The promissory note came due and Ignit Johnston failed to make payment, the investors claim in their lawsuits.

Those cases remain pending awaiting trial, court records show.

The Johnston City Council voted in early December to find Ignit Johnston in default of the development agreement it signed with the city for the sports complex.

The developer was given 10 days to respond and notify the city if they intended to keep property and repay the pre-development grants they received and professional fees the city incurred.

The developer did not reply within those 10 days. They then had until Feb. 1 to convey the property, free and clear of all mortgages and liens, to the city, allowing the city to purchase the property for $1,440,375.

That also did not happen, triggering a 30-day period  in which the developer had to repay

 $3.5 million in pre-development grants and up to $300,000 in legal, engineering and other project-related costs.

According to the lawsuit, the city notified the developer on Feb. 14 that it had to repay the grants, fees and other costs no later than March 3. The city provided written notice to the developer on March 4 that it has failed to reimburse the city as required under the agreement.

In the lawsuit, the city of Johnston is claiming breach of contract and is seeking damages of $3.61 million, attorney fees and other costs associated with filing the lawsuit.