Pearson tells GlobeSt.com the company was behind schedule for the construction of the new fire station and training facility site at 10 Mile and Wixom roads.
The company owner, James Chen, is also facing legal trouble with other developments, including tenants at the 63-acre Main Street Novi project, which features retail, residential and office uses. Greystone was the general contractor on much of the project.
Also, a Novi broker has sued Chen for $500,000.
The city awarded the contract to Chen last year after an extensive bid process. At the time of the contract award, the council questioned giving the contract to Greystone, the low bidder.
City Manager Richard Helwig had informed the council there were options for liquidated damages if the contract is not completed on time, and the council agreed to go with Chen's company if there were penalties incorporated in the contract.
The council invoked those privileges Monday.
"The project has been slipping. We tried to make one last revised schedule in January, and the city waited to see if it would work out, but there was no significant progress," Pearson says.
The city could not determine that sub-contractors were being paid for their work, Pearson adds. Chen was unavailable for comment as of press time.
"We're now meeting with the bonding company (Liberty Bonding Services), to make sure subcontractors are getting paid," Pearson says. He adds the project was supposed to have been finished in August, but that completion time frame will most likely be pushed back.
A new contractor will be hired through the bond company.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
