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Q&A: Will new leadership’s legal cases affect Electric Works?

Q&A: Will new leadership’s legal cases affect Electric Works?
The leader of a new group managing campus operations at Electric Works is facing a series of legal cases. Campus owners and developers say it's not related to the project.

Since Electric Works opened in November 2022, it has reported a rosy picture to the public. But residents have voiced concerns about a revolving door of vendors at Union Street Market food hall. And behind the scenes, there’s turnover in campus leadership, too.

Late last year: we broke news that Carr Workplaces is no longer involved in the project, and Electric Works developers and co-owners (Jeff Kingsbury and Josh Parker) consolidated operations for coworking, Union Street Market, and events/conferencing as well as all beverage services on campus under the leadership of a new group called 3 Pillar Operations (3PO). 3PO is a team of eight people led by Scott Fergusson, who also owns Chapman’s Brewing Co., the anchor dining tenant.

Since we published that newsletter: we've received multiple reader emails informing us that Fergusson and Chapman’s are involved in legal cases. We confirmed this (using public records on mycase.in.gov), and found three cases that mention Fergusson and Chapman’s Cider Co. LLC, tied to financial challenges dating back to April 2020 — before Chapman’s signed its letter of intent to locate at Electric Works in November 2021.

In this week’s newsletter: we break down the allegations according to public records available on mycase.in.gov. We also speak with Electric Works co-owner and developer Jeff Kingsbury, based in Washington, D.C., who says he was aware of Fergusson’s legal trouble when he hired him under 3PO. 

To learn more about the decision and the future of the project, we sat down with Kingsbury, Fergusson, campus spokeswoman Kate Virag, and other Electric Works staff for a Q&A. 

Readers have informed us that there are three legal cases pending that involve Scott Fergusson and Chapman's Cider Co. LLC. Do you believe these cases will affect Union Street Market and Electric Works, now that more of the project is under 3PO’s leadership?

JK: Those cases don’t have anything to do with Union Street Market.

SF: As an operator of the market, we (3PO) don’t own it. We are hired, the same way that ABM provides janitorial services here. It’s a management agreement with key performance metrics, and it’s a performance-based job, so if we don’t do a good job, they can fire us.

KV: We have provided all the information that the Electric Works team is willing and able to provide at this time. 

Tim Ash, a key investor in Electric Works, owns Ash Crest Corp., which is involved in one of the legal cases. Is that concerning to Electric Works and Chapman’s?

JK: I won’t speak to legal matters but let me be clear that this project wouldn’t exist without Tim Ash’s commitment, not just to Electric Works, but to Fort Wayne, in general. I can’t express enough how supportive he’s been.

SF: Just to be clear, this issue is between me and Ash Crest; not Chapman’s and not the campus. *Editor’s note: According to public record, Ash Crest Corp. filed a lawsuit against Fergusson on Aug. 16, 2024, claiming that on April 1, 2021, he delivered to Ash Crest a promissory note in the principal sum of $745,000 (with simple interest accruing at the U.S. Prime Rate after June 30, 2024) in exchange for a loan related to Fergusson’s interest in Chapman’s Cider Company, LLC. Fergusson failed to satisfy the note before it matured on July 10, 2024, resulting in Ash Crest seeking its principal sum plus interest and damages. Both parties are in talks about a settlement, and a hearing for dismissal is set for Feb. 12, 2025, at 11 a.m. 

Before 3PO was contracted to manage Union Street Market, coworking, events/conference and beverage operations on campus, did one team within Electric Works manage all of these roles, or how did that work?

JK: We had a different team overseeing Union Street Market. Carr Workplaces was managing the coworking space, and we also had a different group doing events. We currently have Colliers, a global real estate services firm handling property management and leasing.

Why did Electric Works ownership choose 3PO to manage more parts of the project?

JK: We felt it was important to consolidate operations for efficiency and synergy. We wanted to create more impactful programming and efficiency, from a cost-management standpoint. Scott’s experience as an entrepreneur in both the service industry and the tech industry made sense for us to partner with him. (Prior to Chapman’s, he launched and sold a tech company that became Investigo.) The fact that he was such an early adopter of Electric Works and believed in the community’s vision for it, as well as his passion, made the choice for us.

Electric Works is an extraordinarily difficult project to do. I applaud anybody willing to put themselves out there and try to do the right thing and create an impactful community with us. Can we do better? Sure. That’s part of executing a big vision. And we’re willing to partner with the community to do that.

3PO is a team of eight people led by Fergusson. Who else is involved, and what are their roles?

SF: The primary three members of 3PO are myself, Zach White and Danielle Tomei. Zach is in finance, and Danielle is in service delivery. We also took on employees who were working in Union Street Market and conferencing events and coworking.

Per a 2020 contract with the City of Fort Wayne, Union Street Market is to be “a dynamic and inclusive place that supports the farmers and food producers of Northeast Indiana while enhancing community wellness and providing access to healthy foods to underserved residents.” This involves “developing and implementing educational programs and partnerships, leading community engagement efforts and coordinating food access programs” through the Public Market Trust. What programming and community engagement efforts have been done thus far to achieve these goals?

SF: First, Fort Wayne’s Farmers Market is now run by the Electric Works Public Market Trust, and we subsidized funding for it. The second would be the winter market that takes over when the summer market ends. That’s every Saturday all winter. So basically, we’re having a market for local food producers and providers all year round. We also have the artisan market that’s seasonal and operating, as well. So all three of those things are funded, promoted and sponsored by Electric Works.

JK: In 2024 alone, the Union Street Market and the Campus hosted 380 events. These events had attendance from all areas of Allen County and the region, and 79% of these events were offered either at no cost or significantly reduced cost to community and nonprofit organizations. One such event was Transit Equity Day held in February 2024 by Citilink, which celebrates inclusive and equitable transportation and honors the legacy of Rosa Parks. This event will be held again this year at Electric Works on February 4, at no cost to Citilink. Public events are listed on the Electric Works and Union Street Market websites.

Kate Virag invited Katy Silliman to provide additional context about the Farmers Market and events at Electric Works.

Information from Katy Silliman: “This has been and continues to be a driving goal of Union Street Market since we opened in November 2022. In April 2023, the Plowshares Cooperative Food Hub opened in the East Hall. They provide high-quality local produce at affordable prices seven days a week and are a redemption site for SNAP benefits and the Double Up program. 

In May of 2023, we welcomed the Ft. Wayne’s Farmers Market to Dynamo Alley for the first outdoor market season. Ft. Wayne’s Farmers Market is also one of the few farmers markets that is actively participating in the SNAP and Double Up programs. We’ve held 53 farm markets at Electric Works since May 2023, with over 60,000 visitors to those markets. *Editor’s note: The Local has not confirmed these numbers or seen information to substantiate the data.

We’ve held a wide variety of programming since our opening focusing on educational programs and partnerships, as well as cultural/community engagement programming and community-give-back events and partnerships. Our Teaching Kitchen was built to focus on educational programming connecting community residents to healthy eating with local foods. In the first two years of operations, community partners have held over 65 cooking classes in the space and half of those classes have been free for the public to attend. Our partnership with the local chapter of the National Kidney Foundation is a great example of this. They hold monthly Wednesday evening classes focused on “Cooking for Kidney Health”; the first 30 households who attend receive a free $25 gift card to help with groceries. 

It has also been important for us to provide meaningful community events throughout the last two years to focus on our history, the diverse cultures in our communities and supporting children. We wouldn’t be here today without the legacy of General Electric and the thousands of GE retirees who were committed to saving this amazing campus. The GE Quarter Century Club, made up of GE retirees worked at GE for 25 years or more, was the first group we hosted after opening. They now host their annual luncheon on campus in the GE Club Gym at no cost to that group. It’s a wonderful event and has led to ongoing discussions about how we can continue to build partnerships with them to honor and capture their history and contributions to our community. 

We’ve begun to build a partnership with Amani Family Services and have provided space to them in both 2023 and 2024 for their Welcoming Week. We partnered with Pikoso in 2023 on Cinco de Mayo, and we are bringing that back in 2025.

We have been focused on building strong community partnerships and looking for ways to give back to the community through a few large-scale community events over the last two years. In 2023 and 2024, we’ve supported and hosted the City of Fort Wayne’s Inspire Neighborhoods Conferences, helping to grow and strengthen our communities’ neighborhoods. We’ve sponsored the Philharmonic’s Sound of Innovation Series here at Electric Works. We’ve held three Brooks Family Trunk or Treat events on campus, partnering with Cam & Brittany Brooks of Brooks BBQ, which offers a free and safe environment for families to treat or treat and enjoy Halloween-themed activities. We’ve had over 3,000 attendees over the last two years. 

Last March, we held a free Easter Egg Hunt at Union Street Market that was attended by over 2,000 residents. One of our biggest community engagement programs was the launch of our Bikes on the Bricks Nights, in partnership with the Combat Veterans Motorcycle Association Chapter 14-6. These family-friendly bike nights were a hit last summer, averaging over 1,000 attendees at each of the five events.

Many of the community efforts will be spearheaded by the Public Market Trust moving forward in 2025. We are eager to share the strategic plan and continue to grow our efforts and impact over the years to come.” 

Can you briefly share what the Public Market Trust is, what goals it has for 2025 and what resources it’s been allocated to achieve those goals?

KV: We will be releasing information about the Electric Works Public Market Trust at an event on February 11 at 11 a.m. in Union Street Market, including their strategic plan and focus areas for 2025. Please mark your calendar for this event, and more information will be shared soon!

Electric Works has hosted a few highly attended large events, but seems to be lacking attendance at its regular weekly events. What are 3PO’s plans to increase attendance at weekly events?

JK: Electric Works is a big place. With 10 buildings and lots of common areas, there is always a public or private event happening every day; we averaged over an event per day last year, and we plan to increase the number of public events in 2025. On a campus with so much going on, we continue to work on getting the word out about the ongoing events. We use a variety of platforms to inform the community about the latest happenings at Electric Works and appreciate our media partners helping to highlight key events. We encourage community members to follow Electric Works and Union Street Market on social media (Facebook and Instagram @ElectricWorksFW and @UnionStreetMarketFW) and to subscribe for our ongoing email newsletter here.

We’ve heard that Union Street Market charges vendors a monthly fee to locate at the market. Can you explain how that works?

JK: Yes, businesses in Union Street Market pay rent like everywhere else. Restaurants are expensive to start, and that’s partially why so many fail. So, we wanted to create a space for start-up food and beverage businesses to launch, without having to put up a lot of capital, sign up for long-term leases, high-fixed rents, and expensive build outs of restaurant space. Each business shares in the costs of the seating areas, tables and chairs, utilities, bathrooms, cleaning, etc., which is less expensive than each having to bear those costs individually. We take it a step further. Percentage rent is where the business pays a lower base rent and then a percentage of their sales, which can fluctuate. This is better for our small businesses in Union Street Market because rather than a higher, fixed rent every month, the landlord is willing to take a risk alongside the business. It’s more of a partnership. 

Can you tell us why Electric Works took ownership of the bars at Union Street Market formerly run by Kekionga Cider Co. and Charlie Horse?

SF: We studied other markets across the country, and in many cases, the market is owned by the landlord, and in nearly every case, the bars are also owned by the landlord. So we chose to adopt that model at Electric Works.

It tends to work well because you have so many things going on at the market, and when the landlord has control over beverage and catering services, they can determine the hours and set the tone. Electric Works ownership wanted a vibrant, bustling bar service at Union Street Market, and they hired 3PO to provide that.

We were able to partner with Kekionga Cider, to release their stall, yet we sell their ciders on tap at the Crane Bar, the Neon Pear and up the street at Chapman’s.  

Tell us more about the concepts for the new bars run by 3PO.

SF: We have a number of initiatives this year to create more things to do at Electric Works, including more programming and events with the bars. We envision the West Hall bar, The Crane, becoming a sports bar. It has a pool table, games and big screen TVs, so you can sit and watch games. The East Hall now has The Neon Pear, offering upscale craft cocktails, mocktails, and an extensive wine list by the glass and bottle using the Coravin system. The West Central Wine Club has already formed and now meets every two weeks at Union Street Market, and we would love to see more affinity groups for food, beverages, games, etc.

Some commenters online have questioned Union Street Market’s hours. Some wonder why it’s open seven days a week when it’s not busy, and others ask why it closes at 9 p.m. when it’s promoting cocktails and bars, etc. Has there been talk about adjusting the market’s hours according to vendor needs and/or providing late-night hours for the new bar concepts?

SF: The goal is to serve our customers, and regular business hours make it simple for consistency and to meet the expectations of our community. We are continuing to listen to our customers and also to our merchants, evaluating what makes the most sense. We have a mix of merchants serving coffee and breakfast items, which are busy early in the morning, as well as our bars, which are busier in the evenings. We have demonstrated that we are always willing to pivot and adjust, and we are considering changes to the current schedule.

What are 3PO’s plans for the future of the coworking space at Electric Works in 2025? How full is it currently, and what are the plans to grow that community?

SF: The vision was to create high-performance workplaces from the sole entrepreneur to the global world headquarters, and everything in between. Coworking offers flexible terms and office configurations. We also offer ample conference room options and amenities, which are often accessed by other Electric Works tenants and the general public. We are currently about 70% occupied with businesses in finance, life science, defense, accounting, engineering, insurance, communication, design, marketing, and legal. We’ve seen companies grow from one office to multiple offices in co-working and then expand on campus or within Allen County.

This year, we’re implementing plans to expand innovation, with programming in partnership with several entrepreneurship service organizations in the community. Those announcements will be forthcoming. 

*Editor’s note: The Local has not confirmed that the Electric Works coworking space is 70% occupied or seen information to substantiate the data. 

The most recent impact report shared by Electric Works last year claimed the project is 50 percent occupied and 80 percent leased. Can you share a breakdown of those figures (which businesses and how much space they have) so we can better understand the occupancy rates on campus?

JK: The impact report does not share data regarding the percentage of space currently occupied or leased. About 900 people are coming to campus daily, and we believe that is roughly half the total West Campus employment when completed. There are over 55 businesses and organizations at Electric Works today, but the terms of their lease agreements are confidential.

For full disclosure: The Local has previously partnered with Chapman's Brewing on an event and subscriber deals.