Monthly Lien Law Update: Mega-Projects across the nation are having trouble paying their bill

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Liens against the giant Oceanwide Plaza project across from the Staples Center top $98 million.

The Oceanwide mega project in Los Angeles, California is in trouble.  Plagued by design issues and delays, the project was suspended in January.  The concrete contractor on the job, Webcor Builders has filed mechanics liens against the property and has filed a lawsuit to foreclose on the property.  If successful, the court could force the sale of the downtown LA property to pay the over $62 million owed to Webcor. Webcor’s action to foreclose will have to show priority over a deed of trust filed after the project started purporting to secure $325 million in debt to Downtown Investment.  The value of liens against the mega-project total over $98 million as of March 21st. https://www.enr.com/articles/46559-works-remains-stalled-on-massive-oceanwide-development-project

The Aspen Club construction project is on thin ice.  

PLC Construction Services, Inc. and other lien holders are pushing the courts to foreclose on over $24 million in liens filed against the Aspen Club property.  In the meantime, the Aspen Club has been successful in staving off foreclosures by showing the court it is close to refinancing the project which would pay all debts owed and satisfy all liens.  In a recent development though, the parent company Aspen Club Redevelopment Company, Inc. has indicated it will file for Chapter 11 bankruptcy protection, should the foreclosure proceed. There is still hope for the project and lienholders though, as the Aspen Club parent company has recorganized as Aspen Club Partners, LLC and reported to the SEC over $40 million in equity financing. https://www.aspentimes.com/news/stalled-aspen-club-project-has-court-updates-set-for-this-week/

El Paso’s downtown Marriot construction is complete except for paying their bills.  

Roofers, glass companies, millworks, and many other subcontractors have filed liens against the El Paso Marriot for failure to receive payments totaling $3.8 million in work.  The owner of the Marriot, Hotel Sancho Panza, LLC, claims to have completely paid the general contractor, and, therefore, holds no liability. The general contractor, FT James Construction disputes it has been paid for all work performed and, therefore, cannot pay its subcontractors.  The issue is currently being investigated by the El Paso City Council. https://www.elpasotimes.com/story/news/2019/03/19/contractors-say-theyre-owed-3-8-million-downtown-courtyard-hotel/3216655002/

 

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