City Center Parking sues Round developer
The California company behind the Beaverton project is hit
Daily Journal of Commerce
POSTED: 06:00 AM PST Thursday, November 29, 2007
BY LIBBY TUCKER
City Center Parking is suing the Beaverton Round developer to recoup more than $28,000 in allegedly unpaid bills.
The lawsuit is the latest in a round of woes for Pasadena, Calif.-based developer Dorn Platz Properties, which faced a $9 million construction defect lawsuit from condominium owners at The Round in June and a threat of foreclosure in July from lender DB Beaverton for defaulting on a $31.5 million construction loan.
Dorn Platz in September sold a portion of the property, including four buildings and the garage near the MAX light-rail line in Beaverton, to DB Beaverton, a subsidiary of New York-based Fortress Investment Group.
But the developer still holds an agreement with the city of Beaverton to build four more buildings on the property by 2008.
The new lawsuit once again raises the question of whether Dorn Platz can meet its contractual obligations with the city, which had high hopes for The Round when the development launched more than a decade ago. The project has long suffered from construction delays, difficulties signing tenants and lagging condo sales.
“As long as they stay within the time frame and build what (they say) they’re going to do, we don’t get too involved in their operations,” Lonnie Dicus, a senior project manager with the city, said. “And so any contract City Center has with Dorn Platz wouldn’t affect us too much.”
Dorn Platz owner Greg Galletly did not return calls seeking comment.
City Center managed The Round’s seven-story, 400-stall parking garage for Dorn Platz for more than four years until mid-October, after the sale. The garage is now managed by Norris, Beggs and Simpson, according to Dicus.
City Center last week filed a lawsuit in Multnomah County Circuit Court against Dorn Platz and Beaverton Commercial Investments. The Portland-based parking manager claims the property owner owes money for three months of managing The Round’s only parking garage.
“Dorn Platz stopped paying their bills in approximately August,” James Hein, an attorney representing City Center Parking, said. “And there’s no question about the quality of services by City Center Parking.”
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