In the rush to win federal stimulus tax credits for an environmental innovation center, the city of San Jose handed the project to a poor performing contractor, Applegate Johnston, that submitted the low bid. Now the Modesto-based contractor is bankrupt and the city and contractor's surety, Liberty Mutual, must find a way to finish the job.
The innovation center is to be the heart of the city's ambitious initiative to create a nucleus of environmental innovation and bring 25,000 "clean tech" jobs with it.
The project is currently six months late and $1.6 million over budget, say city officials. Workers for Applegate Johnston, the contractor, stopped going to the jobsite last month.
Calls to Applegate Johnston’s phone listing turned up only a message that the number has been disconnected. Sacramento attorney George Hollister, who is representing the firm in its bankruptcy, said the situation is unfortunate.