Posted on 08/25/2013 10:27:57 AM PDT by NormsRevenge
SAN JOSE -- A Modesto contractor awarded an $11 million contract to build a San Jose environmental center despite finishing two city fire stations late has walked off the job and filed for bankruptcy with the unfinished project more than six months overdue and $1.6 million over budget.
Applegate Johnston's team failed to show up at the Las Plumas Avenue job site last month and filed bankruptcy papers two weeks later, jeopardizing the project's completion and complex financing and forcing the city this week to delay occupancy of a key tenant until next year.
City officials said the deadlines to qualify for that financing under a federal stimulus program as well as the strict rules governing public project bidding steered them into a deal with a builder they've come to regret.
"Everybody had concerns about Applegate," City Attorney Rick Doyle said. City officials overseeing the project "thought they could manage it" by closely monitoring the construction, he said, "but that turned out not to be the case."
No one answered Applegate Johnston's company phone, and it no longer accepts messages. The company's bankruptcy lawyer, George Hollister, did not answer repeated requests for comment.
The Environmental Innovation Center, on about 4 acres at 1608 Las Plumas Ave., is supposed to house a household hazardous waste drop-off center, a Habitat for Humanity "ReStore" selling discounted new and surplus construction material and a "cleantech demonstration center" where "innovators will test clean and renewable energy projects."
(Excerpt) Read more at mercurynews.com ...
Another All-American City
led by a bunch of incompetent boobs.
From the glassy White Elephant City Hall pagoda they built
to the convention center that needs a major re-do..
Do you know the way to San Jose? :=}
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The bonding company will finish the job and the city should suffer no loss
Do you know the way to San Jose? :=}
“The Environmental Innovation Center, on about 4 acres at 1608 Las Plumas Ave., is supposed to house a household hazardous waste drop-off center, a Habitat for Humanity “ReStore” selling discounted new and surplus construction material and . . . “
Should Habitat for Humanity be allowed to keep its tax exempt non profit status now that it is competing directly with the tax paying private sector in selling construction materials? Should tax money be spent providing a structure for Habitat for Humanity’s retail store?
Liberals are looking for new sources of revenue for government? How about taxing and removing subsidies from non-profits competing in the marketplace?
Affirmative action contract?
Moron can’t manage change orders?
Another brilliantly-run city.
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