I-Team: Tax credits at center of dispute
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I-Team: Tax Credits
NBC 10's Jim Taricani reports.A development company says it can’t pay a subcontractor because the state canceled the historic tax credit program.
The state, however, says that’s just not true.
Struever Brothers Eccles & Rouse hired Boyer’s company, Eagle’s Flooring, to put in flooring and ceramics when it renovated the Royal Mills in West Warwick into apartments.
Boyer’s contract ended up being about $400,000 for the work. However, Struever Brothers still owes Boyer’s company $93,000 and the payment is not coming.
“All of a sudden the payments stopped,“ Boyer said.
When Boyer contacted an accountant for Struever Brothers, he said he was told, “We started to hear from the home office about possible problems because the state rescinded money for historic tax credits.“
However, a spokesperson for the governor’s office said Struever Brothers received $27.7 million in tax credits for the Royal Mills project and could be eligible for about $3 million more.
Boyer said he took out a loan to pay his subcontractors. But because he’s still owed money, he said he can’t back the loan.
The NBC 10 I-Team has learned that Struever Brothers is being sued by at least a dozen companies along the East Coast for non-payment to contractors.
“I’m hurt. I’m a person who puts a lot of faith and trust. It hurt me emotionally and financially,“ Boyer said.
Numerous calls placed to Struever brothers from the I-Team have not been returned.
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Reader Reactions
I think that all of the sub-contractors that have done work for Struever Brothers all over the East coast should ban together for a class action lawsuit! It is terriable that this company can get away with all its doing. I think that all the business’ that are involved should ban together and not let this large Corporation try to stump on them!
You would think with the absurdly high rent they charge… they could start making some kind of payments.
Why can’t they use the rents they are collecting. I understand they may owe many people. Let them divide the money collected each month between who they owe. At least it would be something. They have not finished the mills and all they talked about doing. It’s a shame.
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