Within days of a lawsuit being filed, the general contractor and developer on a project to convert a Holiday Inn Express in Midtown Sacramento into market-rate apartments have settled their dispute.
El Dorado Hills-based RCP Construction LLC’s top executive said in an email that it came to an agreement with developer MVC Ventures on May 1, two days after RCP filed the suit in Sacramento County Superior Court over unpaid work.
“RCP has been working with Harc Holdings and their equity partner on a settlement agreement for the past several weeks,” Rick Poipao, RCP’s president, said in the email. “The agreement was fully executed on Wednesday May 1st and payments to settle the account are set to take place the week of May 6th.”
Poipao said the two companies had been in talks to resolve the suit before RCP’s filing, which contended MVC Ventures owed RCP about $2.8 million for its work on the project called Mod at Midtown.
“At the same time, RCP was up against a statute of limitation deadline to file their lawsuit in order to perfect their mechanic’s lien,” he said. “The filing of the lawsuit was merely an administrative formality and the suit will get dismissed once the account is settled next week.”
Mod at Midtown, a $15 million construction project, converted a Holiday Inn Express at 728 16th St. in Sacramento into a 129-unit apartment property. The project opened earlier this year and is about 50% occupied, said Adam Kowalski, a partner with MVC Ventures.
“We have the utmost respect for RCP and remain on great terms,” he said in an email. “There was a contract dispute that has since been resolved.”
MVC, which included Scottsdale, Arizona-based Harc Holdings as a partner, is happy to have taken a fading hotel property and brought new life to a stretch of 16th Street, Kowalski said.
He said the project’s amenities include a tenant lounge, fitness center, outdoor barbecue/fire pit and electric vehicle charging stations.
A subcontractor on the Mod project, Sierra Valley Painting Inc., has its own lawsuit against RCP Construction for unpaid work on the Mod project.
That suit, contending RCP owes the company just under $63,000, is still active.
Jake McCulloch, president of Roseville-based Sierra Valley, said Friday he hadn’t heard yet about RCP’s settlement with MVC Ventures.
“Possibly, but I’ve heard that a few different times now,” he said, of whether RCP’s announcement of a settlement would resolve his company’s case. “It’s been ongoing the last 30, 45 days that they say they have a settlement.”
