Today’s Charlotte Business Journal ramps up coverage of the legal dispute that has ensnared the $200m. EpiCenter mixed-use development in Uptown.
In sum, Flaherty & Collins sounds like it is going to mat to recover funds from the Ghazi Co. over the stalled 42-story condo element of the project. What’s more the project has been under stress since at least September, when disputes over money and construction work began to crop up. Now I really want to know if Charlotte city staff and/or city council knew about these problems in advance of moving to re-write the 2004 $2.2m. incentive package for the project last month.
Turns out that days after Ghazi won a commitment to get $550,000 of that amount from the city immediately instead of the total package when EpiCenter was complete, Ghazi turned around and filed a breach of contract suit against Flaherty. The Uptown paper of record account of the $70m. Flaherty suit filed in response did not mention that little wrinkle in timing. Hmmm.
But Flaherty and Ghazi and their lawyers can take care of themselves. It is city taxpayers who are once again on the hook. This was supposed to be a project that included 420 condos, condos that would throw off property tax revenue for the city. If that is unlikely to happen, what does that mean for the overall financial impact of the project?
The CBJ points out another fun aspect: EpiCenter’s party-central tenants Whisky River et al may be shut down. Temporary occupancy permits issued by the county expire on July 1. They are temporary because of the very issues at the center of the lawsuits. Throw in some mechanics liens for millions of dollars of construction work and we’ve got the makings of a real mess on our hands.
