Mystic Lake sued over Club Nomadic

Prior Lake American

Nomadic Entertainment Group is suing Dakota February Events LLC in federal court for breach of contract after Club Nomadic was canceled and scheduled concerts were moved inside the Mystic Lake complex.

Club Nomadic, operated by Nomadic Entertainment Group, was intended to be at Mystic Lake Casino Hotel for the days surrounding the Super Bowl, with high-profile performers like Gwen Stefani and The Chainsmokers lined up for each of the nights. Nomadic Entertainment Group spent more than $2.4 million on construction for the club, according to court documents.

The club was canceled Jan. 12 and the performances were moved inside the casino complex. Construction on the 65,000-square-foot, multi-level building began in September 2017 and was days away from opening when the announcement was made.

"Venue construction was on track to be ready well before the events were to take place, yet Dakota canceled the contract and moved events inside its Mystic Lake Casino, with no prior discussion with their contractual partners," Nomadic Entertainment Group lawyer Josh Schiller said in a statement.

Now, Nomadic Entertainment Group is suing for breach of contract and unlawful termination.

"They just asserted a breach out of the blue...moved the concerts into the casino where they would the sole beneficiaries," Schiller said in an email. "They left Nomadic with no way to cover (costs)."

The construction of the facility was "substantially complete" as of Jan. 1, according to court records.

According to court documents:

• Dakota February Events LLC, owned by the Shakopee Mdewakanton Sioux Community, and Nomadic Entertainment Group were working toward a construction completion of Jan. 15 for the night club.

• The companies agreed to obtain a certificate of occupancy by Jan. 1. However, portable toilets were not able to be put in until Jan. 8, which would be required for the certificate. On Jan. 10, Nomadic Entertainment Group was told the lack of certificate was a breach of contract and the concerts were moved inside Mystic Lake Casino Hotel.

• Dakota February Events LLC failed to approve certain drawings for more than 40 days, despite Nomadic's repeated attempts to follow up, which caused delay.

• Dakota demanded that Nomadic immediately tear down the facility and "delivered a threat" that Nomadic employees entering the property were trespassers.

"We believe the event would have been a success in the venue being constructed and we are confident that Dakota will be held responsible in court for breach of contract including negligent and fraudulent misrepresentations," Schiller said.

Willie Hardacker, general legal counsel for Dakota February Events, said Tuesday the company learned of the lawsuit through media accounts.

"DFE has not been served," he said. "However, we were fully within our rights to cancel the contract, and will vigorously defend that decision. This will in no way impact guests visiting Mystic Lake or the entertainment scheduled on February 1-4.”

Nomadic Entertainment Group released a statement earlier this month after the cancellation of the club: "We are disappointed Mystic Lake is choosing not to deliver the Club Nomadic experience to the people of the Twin Cities. With that said, we encourage fans to enjoy our first-class experience at Nomadic LIVE at The Armory in downtown Minneapolis."

According to a statement from Angela Heikes on behalf of Dakota February Events, the night club was canceled after it was "determined that it would be impossible to ensure an event that is up to our standards of quality,"

The club was expected to have room for 9,000 attendees. General admission tickets for each of the performances were about $200, with VIP experiences fetching around $1,500.

The Chainsmokers, Kygo, Florida Georgia Line and Gwen Stefani performances Feb. 1-4 were moved inside the complex. The scheduled Ellie Goulding performance was canceled.

The Shakopee Mdewakanton Sioux Community also had an agreement with the Prior Lake City Council to fund the hiring of 60 extra police officers from nearby departments for the event, which is no longer necessary.

Mystic Lake Casino Hotel hired hundreds of temporary employees ahead of the event including bartenders, waiters and food service workers.