Jamestown City Council voting session (April 24, 2023)

Jamestown City Council has approved a settlement to end litigation between the City and the company hired to renovate Tracy Plaza.

The City of Jamestown hired Patterson-Stevens in 2017 to renovate Tracy Plaza, which sits above and also serves as the roof for the city police and fire departments along with the city parking garage.

A lawsuit seeking $2 million was filed in February 2019 by the city and New York Municipal Insurance Reciprocal, claiming Patterson-Stevens Inc. was responsible for not properly securing the area, which allowed rain water to damage the police and fire departments below.

That lawsuit was settled in September 2020.

Patterson-Stevens counter-sued the city for breech of contract in July 2020, claiming the city owed over $306,000 in back payment for work that was done at Tracy Plaza in 2018.

The settlement approved Monday night has the City paying Patterson-Stevens $155,000 with Patterson-Stevens paying the city $75,000. Corporation Counsel Elliot Raimondo said this ends all litigation between the city and Patterson-Stevens.

Council also approved lifting the hiring freeze to allow an Ombudsman to be hired. This position replaces the Associate Corporation Counsel position. The ombudsman will perform human resource duties in the Corporation Counsel’s office.

A resolution also was approved to purchase new finance and payroll software from Springbrook using $106,286 in American Rescue Plan funds. This software will replace the KVS system with the administration saying the upgrade will result in time-savings for staff.

Jamestown City Hall on Third St. is surrounded by Tracy Plaza, which is undergoing another renovation phase following action by the Jamestown City Council on April 27, 2015.

Jamestown City Council will vote on a settlement to end litigation between the City and the company hired to renovate Tracy Plaza.

The City of Jamestown hired Patterson-Stevens in 2017 to renovate Tracy Plaza, which sits above and also serves as the roof for the city police and fire departments along with the city parking garage.

A lawsuit was filed in February 2019 by the city and New York Municipal Insurance Reciprocal, claiming Patterson-Stevens Inc. was responsible for not properly securing the area, which allowed rain water to pour into the police station during a heavy rain storm in September 2017.

The lawsuit sought $2 million in damages.

According to State Supreme Court filings, on September 11, 2020, that lawsuit was discontinued by both parties.

However, a few months earlier on July 17, 2020, Patterson-Stevens sued the city for breech of contract, claiming the city owed over $306,000 in back payment for work that was done at Tracy Plaza in 2018.

The lawsuit also claimed that former Jamestown Mayor Sam Teresi had said the departments were susceptible to water damage and flooding even before work began.

According to the lawsuit, Patterson-Stevens said, “The City has breached the contract by delaying the start of the project, issuing an improper stop work order, interfering with Patterson-Stevens’ performance of the contract, improperly withholding payment or failing to pay or reject invoices as required by the Contract, and improperly delaying completion of the project well beyond the June 30, 2018 completion date.”

The settlement has the City paying Patterson-Stevens $155,000 with Patterson-Stevens paying the city $75,000. The resolution filed said the agreement would “discontinue the litigation and resolve the matter.”

The city and New York Municipal Insurance Reciprocal filed the suit against Patterson-Stevens Inc. in an attempt to recoup an estimated $2 million in damages.

Patterson-Stevens Inc. was hired to renovate Tracy Plaza, which sits above and also serves as the roof for the city police and fire departments along with the city parking garage.

The city and its insurance carrier claim Patterson-Stevens Inc. was responsible for not properly securing the area, which allowed rain water to pour into the police station during a heavy rain storm in September 2017.

Because the lawsuit was only filed this past week, no date has been set as to when the next court action will take place.