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OGDEN — The controversy over the incomplete five-story apartment building facing demolition on Historic 25th Street in Ogden is now in court.
Developer Summa Terra Ventures filed a lawsuit against the contractor that was handling the project, Makers Line, seeking at least $9.7 million in damages.
"Not long after Makers Line began its work, issues started to arise on the project related to the construction, schedule and requests for payment," reads the lawsuit, filed Tuesday in 2nd District Court. "The construction issues involved errors and defects related to such things as underground and above-ground utilities, concrete footings and foundations, plumbing, HVAC and the wood framing of the building."
The new lawsuit adds to "a growing list" of alleged legal problems involving Makers Line and its affiliates stemming from projects around the state, according to Building Salt Lake.
Ultimately, Ogden officials ordered a stop to work in late March last year, initially because wood used to build the structure wasn't sufficiently fire resistant. The building sits at 144 25th Street in a high-profile dining and retail zone. Later, city officials deemed the building dangerous after finding additional "structural deficiencies" and Summa Terra Ventures decided last month to tear down the building. Demolition is ongoing.
Reps from Springville-based Summa Terra Ventures and Makers Line didn't respond to queries seeking comment. Makers Line, with offices in Salt Lake City and Denver, hasn't yet responded to the suit at this early stage.
But Mike McBride, spokesman for the administration of Mayor Ben Nadolski, while not addressing the lawsuit, said demolition, which faces daily scrutiny from city officials, proceeds as planned. The structure is being demolished from the back to the front 25th Street-facing side. Demolition should reach the front of the structure by mid-January, McBride said, while the job should be complete "a couple of weeks thereafter."
The Summa Terra Ventures lawsuit paints a grim picture of how development proceeded on the 25th Street structure, dubbed Union Station and then-slated to house about 55 apartments. The lawsuit also faulted Makers Line in connection with another Summa Terra Ventures initiative in Ogden, construction of an apartment building at 395 W. 12th Street, the Hunters Landing project.
"The construction issues involved errors and defects related to wood framing of the building, HVAC, fire safety and separation and structural defects and issues," reads the lawsuit.
As with the 144 25th Street building, the suit charges that Makers Line used non-fire treated lumber, contrary to applicable building codes. Ogden officials last March ordered a halt to work on the 12th Street structure, but the suit says city representatives last month approved a plan to address the varied problems, allowing work to resume.
The suit charges Makers Line with breach of contract in connection with the two building projects, among many other things, and asks for at least $9.7 million in damages plus interest and costs. Makers Line, the lawsuit says, went out of business late last year, leaving reps from its Union Station subsidiary "to address and solve the mountain of problems Makers Line caused."
McBride isn't sure what will come of the 144 25th Street site once demolition is complete. "That is a question for the developer," he said.
Windows and sheathings are being removed from the 12th Street building as part of the process to address the varied issues with the structure. "Their plans to update the sheathing with the required fire retardant wood were accepted fully in December and now what you are seeing is that work being done. Once they have the new wood applied, the windows will go back in and the project will continue to move forward," McBride said.
