Mayor, Officials Sued Over Deal With Involving The Shack Restaurant

Legal documents filed October 30, 2025, in federal court show the City of Superior is providing legal defense for Mayor Jim Paine, and Economic Planning Director Jason Serck . All are named as defendants in a civil rights lawsuit brought by 2700 Winter LLC, a private development company.

The lawsuit claims that city officials deliberately interfered with the company’s efforts to redevelop waterfront property to benefit a competing business, The Shack restaurant. Specifically, the complaint alleges the city used its regulatory authority to block permits, revoke approvals, and create delays, resulting in financial harm to the developer.

“Defendants acted under color of state law and in concert with each other to deprive Plaintiff of its constitutional rights to due process, equal protection, and fair treatment,” the complaint states.

Federal and State Laws Cited in Allegations

The lawsuit cites violations of federal civil rights under 42 U.S.C. § 1983, alleging that the city officials:

• • Denied the developer equal protection of the laws

• • Retaliated against the company for exercising protected rights

• • Deprived the developer of liberty and property interests without due process

In addition to these constitutional claims, the suit implies violations of state-level standards, including potential breaches of:

• • Wisconsin Statutes §62.23 and §62.23(7), which govern municipal planning and equitable land use decisions

• • Wisconsin Open Meetings Law (Wis. Stat. §19.81), if any decisions or agreements were reached outside the public process Paine has previously been sighted for this violation, and Fruehauf did nothing.

The complaint further accuses city officials of favoritism, stating: “The City’s actions were motivated by an intent to favor The Shack restaurant and to injure Plaintiff’s business operations, in bad faith and without legitimate public purpose.”

City’s Legal Defense Funded by Taxpayers

The city has retained attorney Troy M. Anderson from the law firm Axley Brynelson, LLP, to represent the officials in their individual capacities. The city’s justification reads: “The claims against the Individual Defendants arise out of actions taken within the scope of their employment with the City of Superior,” making the legal costs a matter of public finance.

While legal defense for public employees is standard, this case’s serious allegations elevate potential fiscal exposure, and criminal charges. If the city loses or settles, taxpayers could be on the hook not only for legal fees, but also for damages and injunctive relief.

Impact on City Budget and Accountability

The city has not released any public estimate of legal expenses in the case. There’s no information on whether the outside counsel is operating under a flat rate or hourly billing, nor how much has been paid to date

#ShhhPeriorNews

#OpenMeetingsClosedDoorsNotAgain

READ THE LAWSUIT

---

---

Concerning Lack of Local Oversight

Douglas County District Attorney Mark Fruehauff, who would typically oversee potential criminal referrals in such a case. His documented reluctance to pursue any public misconduct cases—particularly involving city hall—has drawn criticism from multiple transparency advocates.

Disclaimer Everything in this report is based on public records, budget documents, and statements by public officials. Any analysis is opinion about public policy, public conduct, or use of taxpayer funds.