A month after Ronny Finvarb completed a Kimpton Hotel in Miami Beach, a general contractor accused the developer of omitting more than $ 4 million in unpaid construction.
Hollywood-based Emerald Construction Corp. sued Finvarbs Sobe Alton LLC on April 9 for non-payment in the Miami-Dade Circuit Court.
The Kimpton Hotel Palomar South Beach on 1750 Alton Road opened in early March, about two weeks before Miami-Dade Mayor Carlos Gimenez ordered all county hotels, motels and short-term rentals to cease operations to help prevent the spread of the coronavirus slow it down.
Emerald’s attorneys, Oscar Soto and Jose Rodriguez, did not respond to phone messages and emails asking for comments.
Trey Tate, Sobe Alton’s attorney, denied that his client owed Emerald money. “Sobe Alton denies all of Emerald’s claims in the complaint,” Tate said. “Sobe Alton is up to date on all payments to Emerald and will respond accordingly in court.”
According to the lawsuit, Sobe Alton and Emerald Construction signed a contract in April 2017, about a month before Finvarb received a $ 27.56 million construction loan to build the 96-key hotel near the Sunset Harbor neighborhood of Miami Beach had received. The loan was provided by a consortium of TotalBank, Florida Community Bank and Apollo Bank.
The project was slated to be completed in 2018, but was faced with “owner-created and design delays” that resulted in an adjustment to the construction schedule, claims Emerald Construction.
“Although Emerald Construction is entitled to extended general terms and conditions and additional performance time due to these delays and the additional volume of and properly
Work, owner has refused to recognize Emerald Construction appropriately or otherwise compensate, ”says the lawsuit.
In addition, Sobe Alton reportedly refused to approve and fund more than 50 change orders despite asking them to finish the hotel, claims Emerald Construction. In addition, Finvarb’s company has failed to resolve the dispute, despite numerous attempts by Emerald Construction to resolve its bill under the lawsuit.
Emerald Construction claims to have provided a total of $ 19.7 million in construction work, services and materials and owes approximately $ 3.7 million. Combined with interest and legal fees, Emerald Construction is seeking more than $ 4 million in damages.
The Kimpton Hotel in Finvarb was designed by Kobi Karp with Permuy Architecture as the architect of the records. The five-story building has a central atrium, a rooftop pool, and a dining area overlooking the Collins Canal. Finvarb built the property adjacent to the Marriott Residence Inn South Beach, which was being developed by the Finvarb Group.