The subcontractors who worked on the Radisson hotel renovation project in Menomonee Falls, Wis., in 2010 and 2011 might soon receive their long-overdue payments. After the developer defaulted on its loans shortly after the hotel opened, the prospect of collecting anything was uncertain.
The Menomonee Falls Village Board, which had loaned the developer millions, approved a settlement agreement on March 3 that would establish a $400,000 fund to pay subcontractors that have filed claims.
The fate of the settlement was be discussed in Waukesha County circuit court on March 31 in a hearing, at which the lawyers involved suggested modifications that will be considered in another hearing set for April 28.
The payments will come too late to heal all the wounds, financial and psychological, suffered by the Radisson subcontractors, some of whom had given up hope.
“I’ve been told by professionals to write it off and forget it, I’ll never see it,” says Nic Meyer, owner of project subcontractor Nic Meyer Construction. He says his company’s claim is for about $27,000.
In 2011, months after the Radisson’s opening, project general contractor Gil-Her Ltd., which has gone out of business, filed a $2.8-million lien on behalf of the subcontractors.
Then, project owner Lodging Investors of Menomonee Falls failed to make payments on a $17-million loan from the village. The village board filed a foreclosure suit on the property in June 2012.