Court denies motion to dismiss lawsuit by Sheetz for Centerville property

An attempt to get a lawsuit involving a rejected Sheetz gas station proposal dismissed recently was denied in federal court.

Sheetz, Morse Road Development LLC and Hemmert Far Hills LLC are suing Epiphany Lutheran Church, Bethany Village retirement community and the city of Centerville in hopes of constructing a 6,139-square-foot Sheetz store at 6318 Far Hills Ave., where an Elsa’s Mexican Restaurant has operated for 42 years.

Lawyers representing Epiphany, Bethany and Centerville filed separate motions to dismiss earlier this year in the U.S. District Court for the Southern District of Ohio, Western Division at Dayton. The city withdrew its motion in April.

Epiphany and Bethany had their motions to dismiss recently denied by District Judge Michael J. Newman and Magistrate Judge Caroline H. Gentry.

The judges ruled Aug. 22 that “the efficient and appropriate way forward is to permit discovery to occur and consider the parties’ arguments on summary judgment, not earlier at the motion-to-dismiss phase of litigation.”

“Proceeding in this manner will ensure that the Court reviews these arguments only after appropriate discovery has been completed and will guarantee that the Court’s consideration of the parties’ arguments is not premature,” the judges wrote.

The court instructed the parties to “informally confer in good faith and prepare a report” as required by federal law. That report must be filed with the court on or before Oct. 3. The court also instructed the parties to exchange initial discovery disclosures on or before Sept. 26.

Following a request for comment by Dayton Daily News, Epiphany Lutheran Church responded through its legal counsel, Mark Chilson, that “the court, after carefully and thoroughly considering the pleadings and briefing did not issue a decision on the merits, but decided the efficient and appropriate way forward is to permit discovery to occur and the Court will consider arguments regarding dismissal on summary judgment.”

“The Church will vigorously defend the lawsuit and continue to exercise its constitutional rights to address City government and exercise its expression of religion in support of our community,” Chilson said.

Graceworks Lutheran Services/Bethany Village said it was unable to comment on the case.

Centerville Mayor Brooks Compton said the decision to deny Bethany and Epiphany’s motions to dismiss is “one step in a process.”

“Throughout, the city has been and will remain committed to upholding legal and zoning standards,” Compton told this news outlet. “Our top priority is to prioritize the well-being of all Centerville residents and maintain a thriving business community.”

The lawsuit is the latest development in an ongoing battle regarding the future of the Far Hills Avenue site. The city of Centerville’s Planning Commission in August 2023 approved a plan that would have allowed Sheetz to construct its new location there.

After objections from Epiphany and others, Centerville City Council in October rejected Sheetz’s plans to construct the facility.

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