Teaming up with Gary Nalbandian, Baird embarked on the ambitious redevelopment of the Harrisburg property, aiming to create a mixed-use project featuring 142 apartments and 10,000 square feet of retail space. To bring their vision to life, they established KevGar Holdco LLC and inked a legal services agreement with Meyers Roman in December 2020.
Tax Troubles Unveiled
Trouble began brewing in early 2022 when Baird secured $3 million in non-transferable public funding for the project, only for the IRS to hit the plaintiffs with substantial penalties for tax return errors that Meyers Roman had prepared. A more significant shock awaited Baird when he realized that the corporate structure of the limited liability companies created by Meyers Roman didn’t align with the Tax Cuts and Jobs Act specifications. Consequently, both Baird and the LLCs were confronted with increased capital requirements and a tighter deadline to invest these assets into economically distressed communities.
The Legal Chess Match Unfolds
Anticipating imminent litigation, Meyers Roman made a preemptive move by filing for a declaratory judgment in the Northern District of Ohio on March 10, 2023. Their objective was to secure a ruling that absolved them of negligence in providing legal services to Baird and also stipulated that any lawsuit by Baird must be filed in either the Bedford Municipal Court or the Cuyahoga County Court of Common Pleas.
