MF Development-Eight17 Construction Stalled By Financial Problems
By: Jon Wilcox
Eight17 officials have delayed move-in dates at least four times since construction began in February of last year. The most recent prediction for construction completion, late spring, now seems unrealistic to some.
Hale-Mills Construction, the contracting company hired by Eight17’s property management, Innovative Student Housing, currently has an up-to-date building permit, said Abigail Gillfillan, permit center manager.
City Planning and Development officials have required the company to hire a private construction engineer. Cracks in the building’s foundations will be assessed even though the Hale-Mills permit is valid.
“The city doesn’t engineer people’s projects at all,” Gillfillan said. “We just ensure that they have used engineers when they are required to.”
Gillfillan said the foundational cracks do not pose an imminent danger.
Hale-Mills reported the project has experienced financing issues and officials are looking for additional financial investors, Gillfillan said.
Aaron Windham, health care administration senior, said he originally signed a lease with Eight17 last April.
The Eight17 leasing office closed in December 2014, Windham said. Officials with Innovative told Windham the office would reopen in early 2015 at the construction site.
Windham had doubts about the relocation.
“The construction site is a hard-hat-only area,” Windham said. “I think they knew they were lying.”
Jae Sung Um is currently renting the old Eight17 leasing office.
He plans to open “Frozen Cave,” a frozen yogurt shop, at the old office by May.
Windham said he tried to contact Innovative by phone only to find the number disconnected.
“I called and called, but nobody ever answered,” Windham said.
Windham decided to call another one of Innovative’s properties and learned the company was experiencing financial problems.
The Attorney for Students office confirmed Innovative had filed for bankruptcy at a consultation meeting in January 2014, Windham said. He initially approached the Attorney for Students in an attempt to seek legal recourse for breach of contract but was told his case would likely go nowhere.
“It was a rough period,” Windham said. “I slept on my friends’ couches for six months.”
Windham said the constant uncertainty of not having a place to live added to the stress of trying to finish his degree.
The delayed construction project has created difficulties at Treff’s Tavern, a bar located adjacent to the Eight17 building site, said Jessica Peña, pre-physical therapy senior.
The construction has slowed traffic and diminished parking at the bar, she said.
Peña said she heard from off-duty construction workers the project was experiencing financial problems.
“It’s a waste of space,” Peña said. “The construction on the roads is annoying and hazardous for (drivers), especially when they’re drunk.”
Efforts to reach Eight17 and Innovative Student Housing were made via email and by phone. No calls and emails were returned.
Jon Wilcox is a reporter for the University Star where this story originally published, and is reprinted here through a news partnership between the University Star and Corridor News.
