Studio West 117, the mixed-use project on the border of Cleveland and Lakewood that is billed as a neighborhood for the LGBTQ+ community, is facing financial trouble. 

Co-developers Daniel Budish and Betsy Figgie were sued last September by Truist Bank for defaulting on three loans. Filed in Geauga County, the complaint said the two owed $9.8 million. 

Budish and Figgie, who acknowledged in court papers that they missed loan payments, completed phase 1 of the project in October 2022. It includes a gymnasium and dining space. The next phases, which were slated to be completed in 2025, are supposed to include the renovation of Phantasy Theater and the construction of 100 apartments. 

The project has previously sparked controversy in the LGBTQ+ community, as laid out in a joint report by Cleveland Scene and The Buckeye Flame.

Budish said in a statement to Signal Cleveland this week he has a plan to refinance the project “into a social enterprise structure by the end of the year.” He did not elaborate on what that means but said the bank has signed off on the plan. 

“We took a huge risk on our community and embarked on something that has never been done before to help provide an affirming and welcoming space for our LGBTQ+ community,” he wrote. “Since the very beginning we have faced large headwinds, from the legislative attacks on the LGBTQ+ community in Ohio, to Covid and its effect on the bar and restaurant industry, to the macroeconomic construction and real estate environment from rising construction costs, supply chain delays and straight into interest rate increases.” 

Budish added that he hopes “the community continues to provide its support of this project so we can continue to serve and enhance our mission for generations to come.”