The City of Duncanville, Texas, at the direction of the City Council, filed suit against EON Reality, Inc. in Dallas County District Court. The City’s complaint asserts that EON Reality, Inc., a multinational software developer headquartered in Irvine, California, defaulted on an agreement that included an incentive grant and a ten-year lease for the property at 103 E. Wheatland Road, Duncanville, Texas to be used as a virtual and augmented reality school.
In October of 2014, the City of Duncanville and EON Reality, Inc. entered into a written agreement that included an economic development grant of $1,483,374.00 to offset the purchase of equipment to start a virtual and augmented reality school. At the same time EON Reality, Inc. signed a ten-year lease with the City of Duncanville for the property at 103 E. Wheatland Road, Duncanville, Texas.
In October of 2019, EON Reality ceased paying rent and abandoned the premises, defaulting on the lease agreement with the City, which was set to expire on March 31, 2025. The City sent notice of default and termination to EON on July 31, 2020, and terminated the lease on September 15, 2020.
The suit filed by the City of Duncanville, Texas asks for monetary damages of approximately $81,300.00 in reimbursable costs, $153,500.00 for rent and late penalties through September of 2020 when the lease was terminated, $662,500.00 for rent from October of 2020 to February of 2025 per the signed lease agreement, reimbursement of the economic development grant of $1,483,374.00, as well as interest and attorney’s fees.