The City of Warren has been ordered to pay a former waste processing facility $4.5 million 

NEO-ARC opened on the Warren’s southside in 2016 but they only lasted five months of their three year contract with the city before it was cancelled. 

The city claimed they had a right to cancel that contract because the facility “.. refused to accept waste deliveries claiming the continents were excessively large...” a court document from the attorneys representing the city stated. 

The city claims in court documents that they sent a letter to the facilities operators telling them they were breaching their contract by refusing loads and that “failure to correct the areas of compliance” would allow them to end the agreement.

After the city stopped sending them trash, the facilities owners claimed they lost millions of dollars and filed a lawsuit.

“The City of Warren breached its contract to provide waste and pay for recycling by cancelling the contract,” a court document from an attorney representing NEO-ARC stated. “...In addition to those damages, the cancellation of the contract by the City prevents NEO-ARC from continuing operation, because the business needed the substantial fees which would have been generated by the contract with the City to pay its operating expenses and remain viable."

The facility was contracted to receive nearly 100 tons of trash from city residents a day, separate it and sort out the items that could be recycled.

21 News toured the facility just two weeks before it opened. Former CEO of NEO- ARC Tony Grech said at the time that it was supposed to be helpful for residents. 

“Not everybody has curbside. Not everybody has access to the drop box programs,” Grech said in an on-camera interview in 2016. “Whatever is recyclable in there our system and our people will pull out so that it truly is landfill garbage.”

The jury sided with the owners of the facility and ordered the City of Warren to pay them $4.5 million. 

21 News reached out to Grech and his attorney multiple times for comment but did not hear back.

All Warren City Councilmembers either had no comment or referred 21 News to the city's law department. The Law Director, Enzo Cantalmessa said they are exploring all options including appeal but had no further comment.