Kronau Construction and Equipment Inc, the Colonie contracting company that said it was not paid for the work it did on the new Price Chopper in the Village of Colonie, filed a lawsuit for compensation, naming Price Chopper and WP Colonie Associates, LLC, the owner of the property, in the suit.
The lawsuit was filed on Monday, June 1, the day of the grand opening of the new ecologically friendly Price Chopper at the Colonie Plaza on Central Avenue. Pickets crowded the entranceway to the plaza on June 1, handing out fliers and talking to patrons about the money they are owed by the landlord for completing work on the project.
Chip Kronau, president of Kronau Construction and Equipment Inc., said his company is owed about $646,000 by WP Realty, the company that owns WP Colonie Associates, LLC. His company had subcontracted with other contractors and owes them about $500,000 which he says he cannot pay until he receives his money from WP.
Kronau said while WP had told the contractors to go ahead with the project, they were already aware that they would not receive the financing they would need to pay the contractors for their work. Still, Kronau said, WP had the workers complete the job with no intention of paying them.
In response to these allegations, WP Realty released a statement last week, to which they referred when contacted by The Spotlight. When asked when they will be able to pay the contractors and whether this has happened before, WP Manager of Corporate Communications Cathy Pritchard said, [We are] more comfortable sticking to the statement that we sent.`
The statement reads, `We regret the unfortunate situation that has developed with a small group of Albany contractors. Throughout the building process, we communicated our concerns about the project’s financing with our vendors and worked diligently to overcome them.`
It continues, `The current economic climate, particularly in the capital markets, has not allowed the quick resolution that we all desire to achieve. However, we do believe that a successful compromise with our lenders is in sight, which will allow us to honor our obligations to our contractors as well as complete the redevelopment.`
Pritchard did say that WP was `working hard to resolve` the issue and that `We’re working with our lender and doing the best that we can.`
While Price Chopper is named in the suit, Kronau’s attorney, Walter Breakell, of the Breakell Law Firm in Albany, said the supermarket is namely mentioned in the suit because it claims a leasehold interest in the property that is owned by WP and in the suit.
`Price Chopper has been named because they have a lease on the property which is being foreclosed upon in the suit,` said Breakell. `Their interest is in continuing to lease the land.`
As Breakell explained, if the land is foreclosed and then sold, technically Price Chopper could be forced out of its new store.
When asked whether he was expecting the lawsuit, President and CEO of Price Chopper Neil Golub said, `Anybody can name anybody in a lawsuit. We are the tenants of the landlord. The rightful direction of the lawsuit is against the landlord.`
Golub said Price Chopper has tried to negotiate with WP Realty to help the contractors receive their pay, but that Price Chopper received the same response WP Realty was giving the contractors as to why they were not paying them: the bank was not giving them the money to pay the contractors.
Golub also said that by picketing, the contractors are `biting the hand that feeds them,` after Price Chopper had agreed to separately contract with the workers to complete the store by June 1 for an additional amount of around $320,000, which was paid to the workers last week.
`If they had worked with us, maybe we would have taken another step to help them,` said Golub. `But how can you, in all good fairness, justify [picketing?] For them to picket us, it’s a little like spitting in our eye even after we helped them.`
Kronau said he and the other contractors would continue to picket until either they received their money from WP Realty, or could not afford to picket anymore. Breakell said no court date has been set for this case.
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