Court filings: Eight companies claim they’re owed more than $665K for work at HERE apartment complex

A worker takes measurements near the front entrance of the HERE apartment complex on Thursday, Aug. 18, 2016.

Local contractors, masons, equipment rental companies and more all claim they’re owed money for the work they’ve done on the newly-opened, multimillion-dollar HERE apartment complex.

In November the Journal-World reported legal action by one company, RealState Investments LLC, claiming it is owed $169,115 for increased costs due to the site’s mismanagement.

However, alongside RealState at least six other companies have filed seven similar actions, called mechanic’s liens, in Douglas County District Court. Together, the group claims it is owed more than $665,000. The project is receiving several incentives from the city and other local governments, chief among them an 85 percent, 10-year tax rebate.

“It’s certainly a significant amount of money that concerns me, and I will be sure to talk to city staff about it,” Lawrence City Commissioner Leslie Soden said.

“I knew about the one and that was bad enough, but when you’re talking about several, that’s very concerning,” City Commissioner Lisa Larsen added.

But it doesn’t appear the liens or payment disputes will impact the project’s incentives agreement with the city.

City Attorney Toni Wheeler said in a written response Lawrence’s agreements with the developers don’t address the group’s relationships with its contractors, subcontractors or any possible liens on the property.

Larsen said, however, future agreements for projects like the HERE complex could include language to avoid similar situations.

“That’s definitely something we are looking to add,” she said. “We need to make sure the companies getting incentives and assistance from the city are being good citizens. That means taking care of taxes and taking care of the companies that are working for them.”

Essentially a mechanic’s lien states a given subcontractor has invested time, labor or materials in a property, for which the subcontractor has not been paid. Once a lien has been filed, a subcontractor may then file a petition to foreclose on the lien, encumbering the property’s title.

The liens were filed between Sept. 20 and Dec. 1, 2016, and the claims range from $14,857 to $184,710, court records show.

So far only RealState and a regional company named Rew Materials — which claims it is owed $150,258.99 — have filed petitions to foreclose on their liens.

Each of the eight liens list HERE Lawrence Property Owner, LLC as the owner of the complex at 1101 Indiana St., and all but one of the liens list Stevens Construction, of Madison, Wisc., as the project’s general contractor who the subcontractors say failed to pay its bills.

The eighth lien, filed by Fabricor Inc., of Kansas City, Mo., lists Casework Solutions, LLC, of New Century, Kan., as the general contractor.

Representatives from Stevens Construction did not respond to emails or phone calls seeking comment for this story.

John Kitson, vice president of construction management for CA Student Living, the developer for HERE Lawrence, said in a written statement the company has a contract with Stevens Construction but not with any of the other subcontractors hired for the project.

Kitson said his company is working with Stevens Construction and the other subcontractors to “come to an amicable resolution” and “hope(s) to see all outstanding matters resolved in the coming weeks.”

Abe Tekippe, another representative for CA Student Living, said HERE’s owners have done over $375 million worth of additional developments with Stevens Construction. He would not say, however, whether additional mechanic’s liens have been filed with Stevens Construction’s other projects.

In RealState’s petition to foreclose on its lien, the business cited Stevens Construction’s persistent mismanagement of the job site.

When the company arrived to install cabinets, countertops and sinks late in the process “the project was behind schedule” and other subcontractors finished work outside of their scope, the petition says.

Often workers would arrive on the scene to find their tools or materials had been moved or were missing and much of the work was rushed, the petition says.

In July 59-year-old Harry Klausen, a worker for Builders Stone and Masonry, of Olathe, was seriously injured after a boom truck lifting materials at the site came too close to overhead power lines and shocked him.

Klausen was quickly taken to the University of Kansas Hospital in Kansas City, Kan., where he remained for at least three weeks. He was treated for third-degree burns, mostly on his extremities, and doctors amputated the small toe on his left foot.

In October, Builders Stone and Masonry filed for an extension in Douglas County District Court, which allows it an additional five months to file a mechanic’s lien for its work on the property.

At least one other similar extension request has been filed regarding the property.

After a number of delays, the HERE complex opened to some tenants on Aug. 19, though others were not allowed to move in until later due to unfinished work on their apartments.

The $75 million HERE complex boasts 624 bedrooms, but only about 90 percent of them may be filled due to a lack of parking spaces. The development is going through the city approval process to build an additional surface parking lot, which will allow the entire complex to be leased. The parking problems arose after a vendor that was contracted to deliver an automated parking garage for the project filed for bankruptcy.