Local & State Headlines

Project focus of pay dispute

• An Atlanta builder files a lien seeking back payment on an East Albany development.

Carlton Fletcher

ALBANY — The general contractor working on the East Albany Enclave at Oglethorpe development has filed a lien against developer Dwidon Albany LLC seeking $312,025.25 that the company says it is owed for work completed.

James Taylor, an attorney with the Atlanta firm Smith, Currie & Hancock LLP, said Thursday the Paradigm Group LLC, also of Atlanta, is owed for work it has completed on the 44-unit portion of the University Gardens project being developed by Dwidon.

Two other elements of the project, including 170 multifamily units and 29 townhouse units, are being developed by Liberty Partners, Albany Land LLC, which is a separate developer, although it shares a Forest Park address with Dwidon.

“I can’t comment on the specifics of this case because it is currently in dispute,” Taylor said. “I will acknowledge that we are in negotiations with (Dwidon), and it’s a situation that can be resolved. If not, then we’ll let the courts decide.”

Nigel Pennycooke, the managing principle of Dwidon Albany, said the dispute with Paradigm over the funds is the result of a “possible misunderstanding” that is a “typical part of doing business.”

He did say he had documentation showing Dwidon had paid all funds to which the general contractor was currently entitled.

“I’m not saying that this is the case here, but a lot of times these contractors who run multiple projects at the same time end up borrowing from Peter to pay Paul,” Pennycooke said. “They’ll use the money from one job to finance another, and oftentimes they run into problems.

“I’m not saying that’s what happened here because I don’t know what has transpired with them. But I have documents — and I will send them to you the first of next week — that show we have settled up with them under the conditions of this project. I can’t say that this is one of those ‘Peter-and-Paul’ type situations, I can only speak to procedure and we have followed procedure.”

Taylor said he was surprised by Pennycooke’s intimation of mismanagement by his client, but he said the company denies any such problems.

“While I will not talk about specifics of a case that is in dispute, I will say that on behalf of Paradigm I reject any insinuation that they have acted improperly in any way,” he said. “I expressly disagree; that is simply a misrepresentation of the facts.”

Taylor said Paradigm is a highly reputable contractor in metro Atlanta. The builder completed the landmark Kirkwood Gardens Project in Atlanta.

According to related documents, at least two subcontractors working on the University Gardens project have filed liens against Paradigm seeking payment for work their companies have completed on the project.

Jennifer Clark, director of the city of Albany’s Department of Community & Economic Development, said the city had issued a loan of $500,000 to Liberty to help acquire land for the project and noted that the dispute between Paradigm and Dwidon “should not impact us.”

Liberty Managing Partner David Gibson said Thursday he had no comment on the conflict between Dwidon and Paradigm, but he did say his company was looking to begin work on its portion of the University Gardens project as soon as a change in the economy occurred.

“The market is very tight at this time,” Gibson said. “We certainly have a strong desire to complete this project at a level of quality the city of Albany expects and deserves. The city knows our work, and they know we’re going to make that a project everyone can be proud of.”

Albany Mayor Willie Adams, who was accused of having financial ties with Liberty by former Albany City Commissioner Bo Dorough, who unsuccessfully challenged Adams for the mayor’s seat, was unavailable for comment Thursday.

Liberty partner Rod Mullis said Thursday that while his company waits for “the market to present an opportunity for our work to continue,” he planned to help Dwidon market the units it is currently building.

“Sales haven’t gone as well as we wanted, but a lot of that has to do with the economy,” he said. “We’ll help (Dwidon) market those homes, but it needs to be clear that (Liberty) has met all of its financial commitments with the University Gardens project.

“We used a local firm, EMC (Engineering Services Inc.) to draw up the plans for the Jamestown portion of the project, and they have been paid. We don’t want to do anything to compromise our relationship with the city.”

Attempts to contact officials with EMC after business hours were unsuccessful.

Mullis also disputed Clark’s contention that the city had loaned his company money on the Enclave project.

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