City Settles Legal Issues With Flintco Related to Mitchell Park Construction
The City of Palo Alto announced today that it has settled all legal claims with Flintco Pacific related to the construction of the new Mitchell Park Library and Community Center.
Under the terms of the settlement, the City will recover approximately $700,000 from Flintco. In addition, Flintco agreed to pay all of Big D's costs (the replacement contractor hired by the Surety) for completing the work (estimated to be over $2 million) and Flintco has agreed to drop all of its claims against the City.
The City will release to Flintco $4 million of the contract balance that the City has been holding back since the takeover agreement between the Surety and the City went into effect last March. The Surety subsequently hired Big D Pacific Builders to complete the project, and included in the total recovered by the City is approximately $150,000 in change order costs that will be waived.