$1M in foundation repairs start on high-end condo building after lawsuit
Posted on October 13, 2016 by Sheryl Barr
Source: http://www.mlive.com, October 11, 2016
By: Andrew Dodson
More than $1 million in work to stabilize a multi-million dollar condominium project began this week, more than a year after a lawsuit alleging the building had extensive construction defects was dismissed.
In March 2014, 19 residents of the Boathouse Condominiums, 1111 N. Water St., in downtown Bay City filed a lawsuit against five defendants, including the Boathouse Condominiums Owner’s Association, claiming the revitalization project’s construction was defective and “failed in several respects,” according to court records. The residents argued the building had poor ventilation and insulation and an insufficient heating system, in addition to more serious claims that the building’s foundation was heaving and settling.
A year later, Bay County Circuit Court Judge Kenneth W. Schmidt dismissed the case. The residents and defendants entered into a mediation arrangement, according to residents in the condo building, to come up with a solution.
On Monday, Oct. 10, crews from Pennsylvania-based Nicholson Construction began installing extra foundation on the river side of the building, said Paul Rowley, the building’s developer and resident agent for Marina Place LLC, one of the defendants in the lawsuit.
“The building doesn’t appear to have moved at all, but we want to be sure it stays that way into the future,” Rowley said. “I’m calling the work an extra insurance policy on the building.”
In addition to the foundation work, crews are also tearing out an old wood deck, installing new pilings alongside the west side of the building and constructing a new deck out of more durable materials.
Rowley expects the work — which he estimated at more than $1 million — to last a few weeks.
“I’m the biggest investor in that building, so I want to make sure it’s in good shape,” he said.
Several of the 19 plaintiffs in the case were either unable to be reached or declined to comment, only acknowledging that work was being done on the building.
In converting the former Jennison Boathouse into 37 high-end condos, Marina Place acted as the developer, Gregory Construction as the general contractor, Friewald/Staudacher Design Inc. as the architect and MacMillan Associates Inc. as the engineer.
The building was constructed in 1921 as a steel warehouse. A large addition was added in 1935 bringing the total size of the building to about 42,800 square feet. It was later used for boat storage.
William D. Gregory and Rowley were the primary developers and investors in converting the building into living space in the mid-2000s.
Rowley said the work isn’t forcing any condo owners to temporarily leave their residences.
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BAY CITY, MI — Nineteen residents of a riverfront condominium complex in downtown Bay City are suing the various businesses that envisioned and constructed their abodes, claiming the structure is rife with defects.
The residents of the Boathouse Condominiums at 1111 N. Water St. — Dan Blossom, Kris Blossom, Elizabeth Cooley, Carl Cooper, David Dunn, Sue Dunn, Elaine Hirschfield, Jim Patterson, Shelley Patterson, Andy Rogers, Sandy Rogers, Karl Roth, Stephen Sgrazzutti, Shelley Sgrazzutti, Carol Short, David Udehn, Rose Udehn, Dana Wiltse, and Jannis Wiltse — filed their lawsuit in Bay County Circuit Court in March.
They named as the defendants Marina Place LLC, the Boathouse Condominiums Owners' Association, Gregory Construction, Freiwald/Staudacher Design Inc., and MacMillan Associates Inc.
Bay City businessman and developer Paul A. Rowley is listed as the resident agent for Marina Place LLC in state documents.
Freiwald/Staudacher Design Inc. is no longer listed as defendant in the case, having been dismissed from the suit in the spring, records show.
In the suit, the residents are seeking damages in excess of $25,000.
"Individual plaintiffs have requested the association, through its Board of Directors, take action to prosecute construction defect claims, but they've failed to do so," the suit states, adding that the association was incorporated on or about Nov. 16, 2005, as a nonprofit to manage and administer affairs of the condos.
Shelley Sgrazzutti is the president of the board. Rowley is also a member.
In converting the former Jennison Boathouse into 37 high-end living quarters, Marina Place acted as the developer, Gregory Construction as the general contractor, Friewald/Staudacher as the architect and MacMillan as the engineer.
The building was constructed in 1921 as a steel warehouse. A large addition was added in 1935 bringing the total size of the building to about 42,800 square feet. It was later used for boat storage.
William D. Gregory and Rowley were the primary developers and investors in converting the building into living space in the mid-2000s.
The suit states: "The Project as constructed was defective and failed in several respects including but not limited to failure to make the building water tight causing water leaks to occur at several locations and failing to properly design and/or build a structurally sound building, causing damage to the Project, including but not limited to:
- Gaps of varying widths around many of the windows
- Poor ventilation
- Poor insulation
- Insufficient heating systems
- Premature roadway failure
- Improper storm water drainage
- Heaving of the building foundation
- Cracking of the building exterior wall cladding system
- Cracking of the interior perimeter wall drywall
- Excessive water intrusion
- Water damage
- Mold
When it was initially filed, the suit's allegations comprised six counts, but it was subsequently amended in August to include a total of 14 counts, alleging breach of contract, breach of warranty, breach of covenant, negligence, misrepresentation, and piercing the company veil.
The defendants' response to the allegations states "that it is without sufficient knowledge upon which to form a belief as to the truth or falsity of those allegations contained therein and, therefore, neither admits nor denies them, but leaves Plaintiffs to their strict proofs thereof."
"I can't talk intelligently about it as I haven't read the complaint," said Rowley. "The only thing I'm aware of is anyone who can raise the filing fee can sue you for anything. Somebody's got to explain to me down the line what I'm supposed to have done."
The Times was unable to reach most of the plaintiffs. Those The Times did reach declined to comment.
"We haven't seen any evidence that substantiates the claims that you see in the complaint," said Southfield attorney Adam L. Kochenderfer, representing Marina Place. "However, we are continuing to actively investigate the allegations."
Troy attorney James Sukkar, representing Gregory Construction, declined to comment. The Times was unable to contact the other defendants or their attorneys.
The case is scheduled for a settlement conference before Bay County Chief Circuit Judge Kenneth W. Schmidt on Tuesday, Jan. 13, 2015.