Troubles continue to mount for the developer of the BayView project in the Village of Suttons Bay.
In the past two weeks, two new lawsuits have been filed against Suttons Pointe Development, L.C.C., headed by Marcus Yono of Brighton. He also heads the company overseeing construction at BayView, Livingston Building Company.
In addition to the new lawsuits, at least 17 active construction liens against BayView properties were on file this week with the county, according to county Register of Deeds Sue Stoffel.
On July 5, a corporation formed in May known as “Dockside Partners, L.L.C.” filed a class action suit against the developer in Circuit Court in Leelanau County. “Dockside Circle” is the name of the new Suttons Bay village street on which most of BayView condos are located.
The suit alleges that the developer misrepresented to buyers of condo units that “each Unit in the Condominium shall be occupied by a single family, only, and shall not be used for other than single-family purposes…,” according to court documents.
However, sometime in September 2006, the developer allegedly began offering the residential condo units for sale under a “fractional ownership” or “timeshare” arrangement. According to the lawsuit, the developer’s sales staff told one couple purchasing a BayView condo unit that the project was “inconsistent with the sale of time share or fractional ownership interest in the condominium units.”
Attorneys representing Dockside Partners have also asserted that facilities at BayView “are not adequate or appropriate for fractional ownership or time shares.” They have accused the developer of three counts of “misrepresentation” and one count of “fraudulent concealment.”
The “class allegations” filed on behalf of Dockside Partners assert that “all other owners of condominiums have suffered damages similar to those suffered” by the plaintiff.
A second lawsuit was filed against the developer on July 16 by a couple who want their $40,000 “earnest money” back from the developer.
Roger and Terri Lynema of Ottawa County had offered to buy a $479,000 condo unit from the developer. Now, they’re claiming the developer violated the Michigan Condominium Act and the Michigan Consumer Protection Act by failing to provide proper condominium documents and spending their deposit money rather than putting it into an escrow account as required by law.
The latest lawsuit is similar to one filed last month by Norbert and Shelley Baumgartner of Saginaw County, who also alleged that the developer violated the Michigan Condominium Act. The Baumgartners are demanding their $73,900 deposit back on a $729,000 BayView condo unit they agreed to buy in February.
Attorneys for the Baumgartners alleged that the developer had provided the couple a “disclosure statement” indicating that there were no pending legal proceedings involving BayView. At the time, however, the developer was facing litigation from a condo unit owner who wanted her entire $729,000 back because of alleged defects and building code violations in her unit.
A judge subsequently ordered the developer to pay back all of the money plus interest and penalties in that case.
One other lawsuit, filed last month against Suttons Pointe Development and Yono individually, alleges that the developer owes Molon Excavating of Traverse City nearly $90,000 of a $1.6 million job Molon says it completed for the developer. The suit accuses Suttons Pointe of “breach of contract” and accuses Yono personally of “fraud/misrepresentation.”
Molon Excavating is not the only subcontractor seeking payment from the developer.
As of early this week, at least 17 liens were on file against the developer in the county Register of Deeds office. Register of Deeds Sue Stoffel on Monday personally confirmed the number of liens and the fact that none of them had been discharged.
One subcontractor, Advantage Electric of Traverse City, has filed five construction liens totaling more than $16,000 against the BayView property.
Another subcontractor, Moore Mechanical of Honor, has filed nine liens against the developer totaling nearly $50,000.
In addition, three liens were on file against “Phase 2” of the BayView Project being developed by “Leelanau Hills Development, L.L.C.,” also headed by Yono. The second phase of the BayView project is located off Scott Hill Road north of M-204 and west of M-22. So far, three single family homes have been partially completed on the site.
United Building Centers of Grawn has filed two liens against the properties – one for more than $25,000, another for more than $30,000. In addition, Moore Mechanical has filed a $26,729 lien against a “Leelanau Hills” property.
Rod Moore of Moore Mechanical said he planned to discharge the $26,729 lien against the “Leelanau Hills” property sometime this week, however.
“I finally got paid for that one,” Moore explained. “But they took their time paying me – so I’m taking my time getting back up to the courthouse in Leland to file the paperwork.”
Moore said he was done working for the BayView developer – despite the fact that at least 150 housing units are planned in “Phase 2” of the BayView development.
“It’s tough dealing with those people,” Moore said of the developer. “There isn’t much work being done on that project right now as far as I know – and any work that is being done is being done by out-of-town contractors. I don’t know any local guys who will work with them anymore.”
Yono could not be reached for comment.
Print This Post









Post a Comment