JOANN store’s legal battle with Woodsonia continues

GRAND ISLAND, Neb. (KSNB) - Woodsonia may have started the redevelopment process of Conestoga Mall, but they’re still engaged in legal battles with stores currently located in the mall.

On Tuesday, their lawyers focused on the case with JOANN Fabric and Crafts, which is currently seeking $2.4 million in damages in their lawsuit against Woodsonia.

In that suit, JOANN is asking a judge to void a section of its original lease with the previous mall owner, which grants money to the landlord in case of a condemnation, and that any condemnation proceeding by the Grand Island Community Redevelopment Authority is a breach of its lease. According to Woodsonia’s attorney, Greg Scaglione, the re-developer has been negotiating with JOANN since September of 2022.

Prior to Tuesday’s hearing Woodsonia made three offers to JOANN Fabric and Crafts,.

“Woodsonia has been trying diligently to keep them,” Scaglione said. “They’ve afforded more than Nebraska law allows, even though Woodsonia has a contractual right to all of the damages that are associated with the termination of the lease hold interest, they’ve actually afforded to pay JOANN that amount anyways.”

Those three offers include:

• Canceling JOANN’s current lease and asking them to halt operations during renovations, and offering them a new lease when renovations are finished.
• Paying JOANN to move to another store location in Grand Island, while covering damages and relocation expenses.
• Paying JOANN a lump sum settlement in case they decide to leave Grand Island

There wasn’t a ruling during Tuesday’s hearing but the judge did say if either side had anything to file they needed to do it by June 2 at noon.

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