KSHB 41 reporter Alyssa Jackson is a part of the in-depth team. She's been tracking a civil rights lawsuit against the Westport Community Improvement District as it moves through federal court.
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Kansas City's Westport Community Improvement District (CID) is in the middle of federal civil rights lawsuits.
KSHB 41's Alyssa Jackson has been tracking the cases moving through federal court.
The two similar, but separate federal lawsuits claim efforts have been made to shut out Black business owners and DJ's through "good neighbor agreements."
Steven Davis, a Black DJ known as "DJ Street King" is suing for an unspecified amount.
Three Black businesses, Euphoric, LLC, UniKC, LLC and The Sourze, LLC are seeking a $70 million judgment for expected revenue and interference with the business' ability to sustain and profit.
They're suing the Westport CID, which is the governing body of Westport, and respective landlords of properties in Westport.
This month, a federal judge allowed Euphoric, UniKC, and The Sourze, to move forward with filing a second amended complaint that includes Racketeer Influenced and Corrupt Organizations Act (RICO).
"Black patrons who spend their hard-earned money in Westport may not understand that Black business owners cannot make that same money in that place," said Attorney Cecilia Brown, managing partner for Cecilia Nuby and Associates, LLC. "This is quite literally a David and Goliath scenario where you have Black business owners going up against the machine — so even though we know we're in the fight of our life — it's worth it."
Lawyers representing the Westport Community Improvement District would not follow-up with KSHB 41 In-Depth Reporter Alyssa Jackson on interview requests.
The Westport CID did send a statement in response to the allegations:
"The Westport Community Improvement District (CID) and its Board members stronglyrefute the allegations made by Euphoric, Unikc, and The Sourze. While we cannot comment on the specifics of ongoing legal matters, we are confident that the facts will demonstrate the baselessness of these allegations against the CID and its Board members. For decades, Westport has been a welcoming and inclusive district — home to a vibrant mix of people, cultures, and businesses. Diversity has always been a strength of this community, and we remain committed to ensuring that everyone feels valued and supported here. We believe that diversity among business owners and patrons isn’t just the right thing to do — it’s good business. A thriving, inclusive environment benefits everyone and continues to make Westport one of Kansas City’s most dynamic destinations."
The Sourze, LLC
In 2021, The Sourze, LLC, claims it discussed plans for a property at 427 Westport Road with its landord, Westport Development, LLC.
The parties discussed an art gallery/event space in one portion of the property and a restaurant in another portion, operating under the name "The Sourze, LLC." They planned a daquiri shop called "The Daquiri Shop KC," an expansion of its downtown location.
Plaintiffs claim property management initially agreed and approved of the plans and a lease agreement was established. However, The Sourze accuses Westport Development, LLC of falsely representing the property. The complaint states the landlord reversed course, saying the business was only fit to be a clothing store after a lease was signed.
The Sourze, LLC, claims the property was already zoned and deemed fit for a restaurant with a liquor license.
Court documents state that in a meeting, the company stated "they did not want any more bar and restaurant concepts in the Westport because bars, and especially those patronized by the hip-hop crowds, equated to violence."
That was not what The Sourze, LLC had been expecting.
"After Plaintiff The Sourze, LLC, had already paid over $22,000.00 in rents, and nearly $25,000 in expenses, agents of Defendant Westport Development, LLC, told Plaintiff The Sourze, LLC, that it would no longer agree to the concept for the Daiquiri Shop, and that The Sourze, LLC, needed to come up with a new concept."
The petition states without the ability to open the Daiquiri Shop and increase revenues by expanding its business, The Sourze, LLC was paying out more money in overhead than it was able to recover in revenue. That ultimately caused the business to fail.
UniKC, LLC
The plaintiff, UniKC, LLC, entered a lease agreement with DB Icehouse, LLC, for a property at 4140 Pennsylvania Avenue.
UniKC, managed by D’Mario Gray, received keys to access the property for renovations ahead of its grand opening.
Court documents claim UniKC's business partners were meeting at the Denver Biscuit to discuss plans with the owner of a neighboring business. The owner of the Denver Biscusit, according to the court document, expressed concerns with the music (specifically whether it would be R&B and Hip-hop) the crowd the club was drawing and the age of the target market.
UniKC's partners claimed they were offended by the owner's tone, but explained it was "a club catering to a young, R&B Hip-hop crowd".
The partners also said they would be following security guidelines and employing officers from the Kansas City Police Department.
UniKC believed the owner of The Denver Biscuit contacted the landlord to express "displeasure."
The next day, DB Icehouse, LLC, told UnikC via email that they received a cease and desist letter regarding the lease.
After that email, plaintiffs claim locks were changed and UniKC could not access the property.
UniKC claims DB Icehouse paid $100,000 to the business to terminate its lease and walk away.
"Mr. Gray was told that several neighboring business owners, including the owner of the Denver Biscuit, did not want Mr. Gray's 'type of crowd' to come to the Westport community and cause problems."
Euphoric, LLC
Ale House, previously located at 4128 Broadway, closed its doors in Westport on April 9, 2024.
Christopher Lee, owner of Euphoric, LLC, contacted the landlord, Defendant Harold Brody about a lease agreement for the space.
Lee accused Brody of requiring him to take a personality test before entering into a lease agreement.
In discussions, court records state the defendant told Lee the previous business made $7 million annually.
Euphoric LLC said it intended to reopen the building as a new restaurant and bar.
Lee claimed the defendant agreed to the concept and the parties agreed to a "profit-sharing partnership" for a monthly leasing fee and percentage of Euphoric's profits.
A lease agreement was signed on Oct. 23, 2024. An announcement followed on social media that the new restaurant, "Ale House West", was reopening and hiring.
After the announcement started gaining attention, the plaintiffs claim CID defendants started "interfering with Euphoric's plan to open."
Euphoric accuses CID defendants of instructing the landlord to terminate the agreement.
The plaintiffs claim the defendant asked for the name to be changed to "House of Broadway, LLC".
On Oct. 28, 2024, Euphoric claims the landlord and CID defendants refused to give Euphoric representatives the keys to the restaurant. Euphoric claims the defendants refused to grant access to the restaurant despite a legally binding lease agreement leading to "public humiliation".
Lee accuses another defendant, Bret Allred, with the Wesport CID, of saying in a phone call to him that Allred and other business owners "did not want Euphoric's 'type of crowd' in Westport."
Defendant Brody, according to Lee, said during a phone call 'I'm not suggesting that there's necessarily a breach...it just didn't pan out..."
Lee says Brody added in the call, "They're afraid that it will bring violence."
Euphoric claims the defendant has not responded to a demand for immediate possession of the restaurant it sent on Nov. 15, 2024.
DJ Street King
Steven Davis, a Black DJ known as "DJ Street King," filed a separate civil rights lawsuit against Bret Allred, the Westport CID, The Roadhouse Group, Inc. DBA Firefly Lounge at 4116 Pennsylvania Ave., and Firefly's owner Todd Gambal.
Davis claims his services were terminated because of racial discrimination involving the CID, Allred, Gambal and Roadhouse.
The complaint includes practices involving a "No play List" of Black artists, allegedly a scheme to limit Black customers in Westport businesses.
DJ Street King accuses the defendants of terminating his DJ contract with Firefly after CID member Allred threatened the business' liquor license if they continued to hire DJ Street King.
"Within the last ten years, Defendants Allred and Defendant CID have engaged in a pattern of racketeering and have committed at least two acts involving bribery and/or extortion in violation of 18 U.S.C. §§ 1951, 1962, and 1964," the complaint states.
Many of the allegations have been denied. However, Defendant Firefly stated in its court filed responses:
"Defendants admit they have experienced increased scrutiny by Westport CID and others, as it relates to engaging Plaintiff Davis for his DJ services. Defendants further admit they were concerned about Firefly losing its liquor license, losing money and potentially closing as a result of the increased scrutiny…Defendants further admit that the Good Neighbor agreement is used by CID Board members to influence Westport business owners to comply with certain restrictions and requirements dictated in the Good Neighbor Agreement."
Davis is requesting a jury trial and an unspecified amount for financial relief for punitive damages, attorney's fees, expert witness fees and expenses, and relief the Court considers "just and proper".
"Civil Conspiracy" and Racketeer Influenced and Corrupt Organizations Act (RICO)
Court filings include accusations that Kansas City officials, current and former board members in Westport's CID, business owners and property owners colluded through good neighbor agreements to push out Black entreprenuers.
The petition states defendants "Used coercion and extortion to restrict and/or minimize contracts for services with Black/African American business owners and patrons in Westport".
It further claims the defendants are "actively engaging in illegal racketeering through agreement and the use of its relationship with Kansas City officials, through threats to other Westport business and property owners that Defendants will have the liquor licenses of those Westport business owners revoked if those business owners do not follow the 'rules' of the Defendants, whether legal or illegal."
Good neighbor agreements are documents between businesses and stakeholders outlining concerns and specific issues and how parties can work together.
The lawsuits claim the agreements targeted black businesses by preventing leases and liquor licenses to Black entrepreneurs, preventing businesses from using Black DJ's and having a "no playlist" that bans a list of Black artists.
The plaintiffs claim if businesses didn't comply with the CID's rules, they'd lose their liquor licenses.
According to court filings, attorneys for the plaintiffs have evidence of extortion and bribery of Westport businesses in audio recordings, claiming if businesses didn't follow the agreement they'd get "put out of business."
Plaintiffs believe the agreements are the reason why Euphoric, LLC, UniKC, LLC, and The Sourze, LLC, could not do business after signing lease agreements in the district.
The defendants denied all allegations, responding in court record that they "deny engaging in any unlawful acts".
The plaintiffs are demanding a jury trial.
"False, scandalous, defamatory statements", Westport CID member
Bret Allred, Westport CID member, is suing all plaintiffs for damages in excess of $250,000.
The lawsuit includes heavy redactions, and claims invasion of privacy and defamation for the defendants providing inaccurate facts that became content for a YouTube video.
Allred claimed the information provided by the defendants for the video, were "misstatements of fact designed to portray the Westport CID and [redacted] as "Racist, corrupt and immoral."
He's suing, according to court records, for "the publication of the false, scandalous, and defamatory statements will be subjected to humiliation, embarrassment, hurt, mental anguish, pain, and suffering and in the future will be deprived of public confidence and social and business associations."
