Construction firm sues Miami developer alleging it lost out on more than $1M on two affordable housing projects

Projects include renovating a 228-unit apartment complex in Cutler Bay and building a 160-unit apartment building in Liberty City

June 13, 2018 10:30 AM

Garden Apartments and Tuscany Cove Apartments

A Doral-based company was squeezed out of renovating an apartment complex and building a new multifamily project by a non-profit affordable housing developer, according to a recently filed lawsuit in Miami-Dade Circuit Court. As a result, Edgewater Construction Group alleges it lost out on more than $1 million in construction profits.

Edgewater is suing Tacolcy Economic Development Corp. and its two affiliates Garden Walk Associates and Tacolcy Tuscany Cove I for breach of contract, unjust enrichment, and negligent misrepresentation, among other counts. Representatives for Edgewater and Tacolcy did not immediately return phone messages and emails seeking comment.

According to the complaint, Edgewater had an oral agreement with Tacolcy president Carol Gardner and other executives to provide design development services, budget consultation, value engineering proposals and overall project implementation on the two projects. In exchange, Tacolcy would use Edgewater as its general contractor.

The first project involved the renovation of a 228-unit apartment complex built in 1995 called Garden Walk in Cutler Bay. The second entails the new construction of a 160-unit apartment building called Tuscany Cove Apartments at 5900 Northwest 7th Avenue in Miami’s Liberty City. That project, which will provide housing for low income seniors, received $22 million in tax-exempt financing and will have a total construction cost of $34 million, according to a February 2017 press release from the city of Miami.

The city provided Tacolcy with the 1.5-acre site in Liberty City to build Tuscany Cove. The complex’s onsite amenities will include an outdoor courtyard, a large community room, a laundry facility and a small computer/library room. Its ground floor will feature around 8,300 square-feet in commercial space.

According to the lawsuit, Edgewater claims it assisted Tacolcy to obtain financing for the two affordable housing projects and resolve disputes with third parties who furnished preconstruction services.

“[Tacolcy] never compensated Edgewater for said services, and ultimately refused to hire Edgewater as the projects’ general contractor,” the lawsuit states. “Edgewater’s services increased the value of Garden Walk Apartments and Tuscany projects, and consequently anticipated more than $1 million in profits as the projects’ contractor.”

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