The owner of a new downtown Ludington restaurant and entertainment venue has filed a lawsuit against the City of Ludington, claiming officials unlawfully halted construction on the multimillion-dollar project just weeks before its planned opening. The 43-page complaint, filed by ASR Real Estate, LLC, alleges the city is using a stop-work order to unfairly pressure the developer into funding a separate municipal bike-lane project.
Key Takeaways
- ASR Real Estate, LLC, owner of the AndyS restaurant project, has filed a lawsuit against the City of Ludington in Mason County Circuit Court.
- The lawsuit alleges the city unlawfully issued a stop-work order, reversing a site plan that was approved in 2022.
- ASR claims the city is attempting to force it to pay for a bike-lane project estimated to cost between $100,000 and $300,000.
- The company reports financial losses exceeding $90,000 per month due to the construction halt.
- The City of Ludington has publicly acknowledged the lawsuit but has declined further comment, citing the active litigation.
Legal Action Follows Stop-Work Order
ASR Real Estate filed the verified complaint and jury demand on October 13, 2025, in Mason County Circuit Court. The legal action targets the City of Ludington for what the company describes as "government overreach" and a "bait and switch" maneuver that has stalled the nearly complete AndyS restaurant project at 129 W. Ludington Ave.
The project, located at the site of the former Michael’s Bar & Grille, was intended to be a premier dining and entertainment destination. According to the court documents, plans included a sports bar, a golf simulator, a rooftop terrace, and facilities for live entertainment and private dining.
ASR states that after years of construction based on a city-approved plan, officials abruptly reversed their position in the summer of 2025. The city then issued a stop-work order on September 18, 2025, preventing the final stages of interior work and prohibiting the building from being occupied.
Allegations of a "Bait and Switch"
The core of the dispute centers on a site plan approved by the Ludington Planning Commission on August 7, 2022. This plan detailed the placement of the building's masonry columns and the adjacent curb and gutter along Rath Avenue, which ASR claims was consistent with the previous structure's footprint.
The lawsuit states that construction proceeded without issue from August 2023 until the summer of 2025. At that point, with the restaurant nearing completion, the city allegedly revoked its approval. The filing asserts the city declared the curb could not be placed in the location specified on the approved site plan.
Project Timeline
- 2021: ASR Real Estate purchases the former Michael’s Bar & Grille property.
- April 2022: The old building is demolished.
- July 1, 2022: A site-plan application is submitted.
- August 7, 2022: The Ludington Planning Commission approves the site plan.
- August 2023: Construction begins on the new AndyS venue.
- September 18, 2025: The City of Ludington issues a stop-work order.
- October 13, 2025: ASR Real Estate files a lawsuit against the city.
Dispute Over Bike Lane and Public Right-of-Way
The lawsuit accuses city officials of using the stop-work order as leverage. ASR alleges that after halting the project, the city attempted to compel the company to pay for a proposed bike-lane project as a condition for resuming work. This project would reportedly run between Ludington Avenue and Dowland Street, with an estimated cost of $100,000 to $300,000.
"The City wants a bike lane … and this was the chance to force ASR to pay for it," the legal filing states. "If the conscience is not shocked by this ‘extortion,’ it should be."
ASR claims it is incurring significant financial damages, with losses of more than $90,000 per month while the restaurant is unable to open. The complaint includes multiple counts against the city, such as violation of due-process rights, tortious interference with business expectancy, and abuse of governmental authority.
Financial Impact
The developer is seeking compensatory damages exceeding $25,000, in addition to injunctive relief that would allow the restaurant to complete construction and open for business. The lawsuit also requests reimbursement for all attorney’s fees and court costs.
City's Position and Engineering Findings
The stop-work order issued by the City of Ludington on September 18 provides a different perspective. In the order, the city stated that the project was "not constructed in accordance with the approved site plan."
City officials cited concerns that the building's columns encroach too closely on the public right-of-way along Rath Avenue. The order noted that this configuration could obstruct vehicle traffic and pose a public safety risk. It also stated that the construction interferes with "planned improvements to Rath Avenue and the downtown corridor," referencing future pedestrian and bike-lane enhancements.
Independent Engineering Report
In response to the city's claims, ASR commissioned an engineering assessment from Abonmarche Consultants, Inc. The firm's findings, included as an exhibit in the lawsuit, directly contradict the city's position.
In a letter from early October 2025, Abonmarche concluded that the columns and curb were built according to the dimensions in the approved 2022 site plan. The report also confirmed that Rath Avenue maintains a 44-foot curb-to-curb width, which meets Michigan Department of Transportation (MDOT) standards for a road with two travel lanes and two parking lanes.
The engineering firm found "no engineering basis for the assertion that the columns or curb encroach upon the public right-of-way or restrict safe use of Rath Avenue." It further concluded that no reconstruction was warranted from a safety or engineering standpoint.
Official Acknowledgment and Next Steps
During a City Council meeting on October 13, City Manager Kaitlyn Aldrich formally acknowledged that the city had received the lawsuit. She provided a brief statement on the matter.
"Unfortunately, despite efforts on both parties, a lawsuit was received today from the AndyS team to the City of Ludington, so at this time there will be no further public comment on the project until we can figure out our path forward," Aldrich said.
As of Tuesday afternoon, the city had not yet filed a formal response to the complaint in court. ASR is asking the court to declare the stop-work order unlawful, reinstate all construction approvals, and issue a permanent injunction to prevent further interference from the city.
