The West Shore developer who defaulted on the $28 million dollar Capitol View project in Harrisburg was in federal court Wednesday, facing contractors who say he owes them millions of dollars. The problem is that he doesn't have enough to pay them.
David Dodd II wanted to build the Capitol View Commerce Center at Cameron and Third Streets in Harrisburg in 2007. Five years later, the project is an unfinished eye sore and the Cumberland County developer faces a federal prison sentence of up to 30 years.
Vacant and abandoned, the structure was to be a five-story office hub that would launch the revitalization of this city neighborhood. Plans called for it to be a 215,000 square foot facility hosting a printing operation, offices and retail stores. Constriction began in 2007. In the spring of 2008, contractors walked off the job claiming they had not been paid.
A federal investigation into the use of $16.2 million dollars of federal and state charges funneled through the city led to Dodd's arrest on felony charges, including money laundering and misuse of government funds.
He pleaded guilty and is awaiting sentencing which could include a prison term of up to 30 years.
Wednesday, contractors and other businesses appeared in federal court to plead their cases for restitution before Judge Sylvia Rambo. Among them was Robert Bailey, co-owner of H & R Mechanical of Middletown. The heating, air conditioning and ventilation company was to be paid $1.7 million. With their work nearly completed, bailey told the court the firm is still owed $1.2 million dollars.
Grant regulations required Dodd to be bonded. He wasn't and the Reed administration knew it.
"Mayor Reed knew that Dodd wasn't bonded. He probably wouldn't be able to get a performance bond because he has no history as a contractor and he let it go. If the general contractor was bounded, we wouldn't be here today,” explained Robert Bailey, Co-owner of H&R Mechanical.
Bailey says if the contractor was bounded, he would have defaulted. The bonding company would have to pay the costs to complete the project and subrogated against Dodd.
Bailey says times have been tough at H&R Mechanicals. First there is the loss of $1.2 million dollars. He and his partner had to borrow $500, 000 to satisfy the bonding company and there were employee layoffs.
As for reimbursement from Dodd, Bailey says he won't live long enough to get paid.
David Dodd II wanted to build the Capitol View Commerce Center at Cameron and Third Streets in Harrisburg in 2007. Five years later, the project is an unfinished eye sore and the Cumberland County developer faces a federal prison sentence of up to 30 years.
Vacant and abandoned, the structure was to be a five-story office hub that would launch the revitalization of this city neighborhood. Plans called for it to be a 215,000 square foot facility hosting a printing operation, offices and retail stores. Constriction began in 2007. In the spring of 2008, contractors walked off the job claiming they had not been paid.
A federal investigation into the use of $16.2 million dollars of federal and state charges funneled through the city led to Dodd's arrest on felony charges, including money laundering and misuse of government funds.
He pleaded guilty and is awaiting sentencing which could include a prison term of up to 30 years.
Wednesday, contractors and other businesses appeared in federal court to plead their cases for restitution before Judge Sylvia Rambo. Among them was Robert Bailey, co-owner of H & R Mechanical of Middletown. The heating, air conditioning and ventilation company was to be paid $1.7 million. With their work nearly completed, bailey told the court the firm is still owed $1.2 million dollars.
Grant regulations required Dodd to be bonded. He wasn't and the Reed administration knew it.
"Mayor Reed knew that Dodd wasn't bonded. He probably wouldn't be able to get a performance bond because he has no history as a contractor and he let it go. If the general contractor was bounded, we wouldn't be here today,” explained Robert Bailey, Co-owner of H&R Mechanical.
Bailey says if the contractor was bounded, he would have defaulted. The bonding company would have to pay the costs to complete the project and subrogated against Dodd.
Bailey says times have been tough at H&R Mechanicals. First there is the loss of $1.2 million dollars. He and his partner had to borrow $500, 000 to satisfy the bonding company and there were employee layoffs.
As for reimbursement from Dodd, Bailey says he won't live long enough to get paid.