Developer of Downtown Kaufmann’s site is dogged by claims for payment
A Philadelphia firm has paid one contractor and claims to have settled with another for the work both performed as part of the redevelopment of the former Kaufmann’s/Macy’s department store in Downtown.
But it apparently still has some work to do. A third contractor, Five Star Drywall, filed a claim for a mechanics lien Friday, stating it is owed $17,965 by 400 5th Avenue LP for work it did on the project.
In paperwork filed in Allegheny County Common Pleas Court, Five Star Drywall stated it has been owed that amount since Aug. 6, when it finished repairing headers and damage to various apartment units. It also fixed and installed drywall as part of the project.
According to the filing, Five Star Drywall has been partially reimbursed for its work but is still owed the $17,965.
Ronald J. Lefebvre, one of the attorneys for Five Star Drywall, declined comment. Michael Samschick, president and CEO of Core Realty, an affiliate of 400 5th Avenue, could not be reached for comment.
The filing by Five Star Drywall came after Mr. Samschick said he made amends with two
other contractors that had filed for mechanics liens after not being paid.
Pittsburgh Property Maintenance filed paperwork in Common Pleas Court acknowledging that a $177,347 mechanics lien it filed last month against the Core affiliate had been satisfied.
The firm, which did miscellaneous carpentry work as part of the $100 million redevelopment, filed the lien in November charging that it had not been paid for its work since Sept. 14.
Another company, Triton Holdings, also filed a mechanics lien claim last month for $630,702, stating it had not been paid since July 24 for work that included interior demolition, asbestos removal and fireproofing of the structure.
Triton filed paperwork in Common Pleas Court directing that the mechanics lien claim be withdrawn. It did not say whether the claim had been satisfied. William D. Clifford, attorney for Triton, declined comment.
Mr. Samschick said last week before the Five Star Drywall claim was filed that he had paid both Pittsburgh Property Maintenance and Triton.
“I know the guys. They’re good guys. I worked with them well. They’ve been very honorable,” he said.
He attributed the delays in paying the two contractors to a “resized” loan he had to do to increase the project’s amenity space and to meet code requirements for sprinklers throughout the 13-story building.
“It was a timing issue in reference to releasing the funds from the bank,” Mr. Samschick said.
Core purchased the Downtown landmark, which served generations of shoppers dating back to the late 1800s, for $15 million in 2015 with plans to transform it into a premier mixed-use complex after Macy’s closed the department store.
But the project, which is scheduled to include 311 luxury apartments and 160room Even Hotel as well as 130,000 square feet of retail space, has been bogged down by delays, including an electrical vault fire in summer 2016.
The only business that has opened so far is a Waffles, INC affeinated restaurant in the old Kaufmann’s annex on Fifth Avenue near Cherry Way.
And even that was five months late in debuting after the owner had to overcome several hurdles, including the lack of electrical power to the building at one point, to open.
The delays also have left in limbo those who have signed leases to occupy the new apartments, as Core works to secure the temporary occupancy certificate needed from the city to start moving in people.
Until that certificate is obtained, the Even Hotel can’t open. That part of the project is all but finished.
“I think at this point we’re probably looking at opening in mid-January,” said Matthew Shollar, a representative for Pittsburgh Reception Hotels and Resorts, the developer.
The company originally had hoped to open the hotel last spring.
At one time, Mr. Samschick had predicted that the first apartments would be available at the end of 2017. That later was moved to this past August and then to October. He’s now hesitant to give a timetable.
He previously has said he doesn’t want to move anyone in until amenities like a 10,000-square-foot sports court and an infinity swimming pool on the rooftop are in place.
Mr. Samschick did say he hopes to secure the temporary occupancy certificate “in a very short period of time.” Core, he said, was working on fine-tuning a couple of items needed to do that.
“We’re really close to that,” he said.