Northport Reaches $700K Settlement With Company Over Unpaid Rent

NORTHPORT, AL — The City of Northport has agreed to a $700,000 settlement following a dispute over unpaid rent with a New Jersey business that has lasted over four years.

Click here to subscribe to our free daily newsletter and breaking news alerts.

According to the latest federal court filing, the City of Northport sued Eddie Kane Steel, a New Jersey company, and Gus Kane, Kane Steel’s owner, regarding unpaid rent on a Harper Road property owned by the City of Northport.

A past filing states that in January 2020, Northport and Kane entered an agreement relating to Kane’s use of the property, with the agreement requiring Kane to pay $5,000 a month “for month-to-month rent.”

This was done, according to the City of Northport, as a placeholder for a couple of months to allow both sides to try to resolve an issue over back rent without having to go to court.

The City of Northport in the past alleged that it is undisputed that Kane did not make the monthly rent payments as the agreement required and, after missing two payments, Kane missed two payments in the first six months following the agreement.

This prompted Northport to initiate legal proceedings against the business owner, resulting in Kane being ordered by a federal judge to vacate the property at the end of the 2021 calendar year.

However, trespassing claims were raised by city officials after Kane remained on the property following Northport's lawsuit for damages.

Kane argued in the past that Northport’s continued acceptance of the monthly rent payments under the January 2020 agreement precluded Northport’s trespass claim. However, Northport responded by saying the rent payments were for an undefined rent rate, which Kane still failed to make each month.

Ultimately, the City of Northport will recover $700,000 from Kane Steel.

As part of the settlement, Kane Steel will be required to pay $250,000 by the end of the business day on Wednesday, Sept. 6. The company will then have to pay $200,000 on or before Dec. 31 and $250,000 on or before June 30, 2024.

Have a news tip or suggestion on how I can improve Tuscaloosa Patch? Maybe you're interested in having your business become one of the latest sponsors for Tuscaloosa Patch? Email all inquiries to me at ryan.phillips@patch.com