Contractor claims downtown hotel developers owe $1 million
By Justin Wier
A contracting company that performed work to renovate the Stambaugh Building for the DoubleTree by Hilton hotel filed a lawsuit this week that claims the hotel’s developers owe them more than $1 million.
The lawsuit, filed in Mahoning County Common Pleas Court, claims that Youngstown Stambaugh Hotel LLC – a company incorporated by Dominic Marchionda in 2015 – failed to make contractually obligated payments to The Brewer-Garrett Co., a Middleburg Heights contracting company that does mechanical, electrical and plumbing work.
Brewer-Garrett performed those duties from design to completion, according to the lawsuit.
The lawsuit claims that Stambaugh began making payments directly to subcontractors in breach of the contract between the parties.
The money Brewer-Garrett claims it has yet to receive totals $1,080,031.
“Brewer-Garrett has performed its services consistent with the professional skill and care ordinarily provided by professional engineers in the same or similar circumstances,” the lawsuit states.
A spokesperson for the firm representing Youngstown Stambaugh Hotel LLC said the client hopes to try and resolve the differences.
“They deny the allegations and look forward to their day in court,” the spokesperson said.
The 125-room hotel opened at 44 E. Federal St. in May. It is the first hotel to operate in downtown Youngstown since the 1970s.
Marchionda managed the $32 million project for his NYO Property Group until November, when he resigned a month after a Mahoning County grand jury indicted him on more than 100 counts including theft, tampering with money records and money laundering.
Court records documented alleged abuse of funds Marchionda received for the Flats at Wick, Erie Terminal Place and Wick Tower projects, but did not mention the hotel project.