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As of July 29, 2020, at least seven mechanics lien claims have been filed against a Courtyard Marriott hotel project in Santa Cruz, CA totaling $7.6M in unpaid construction work, according to lien affidavits.
Including the general contractor, seven different contractors have placed the claims on the property owned by Santa Cruz LP, which is based in San Jose, CA. All seven liens have been processed by the Santa Cruz County clerk’s office.
The hotel project has reportedly been in development since 2008.
7 Contractors Owed $7.6M on Santa Cruz Hotel Project
The seven contractors are allegedly owed a total of $7,672,059.12 for work taking place at the Courtyard Marriott project located at 313 Riverside Ave., Santa Cruz, CA, located just two blocks from the Santa Cruz Beach Boardwalk.
According to the lien affidavits, the largest lien was filed by the project’s general contractor, Angeles Contractor, Inc., against Santa Cruz LP pursuant to California statutes governing mechanics liens.
On June 9, 2020, Angeles Contractor filed a lien valued at $6,662,058, which accounts for 87% of the total funds withheld from contractors on this job site.
Angeles Contractor is now facing at least four mechanics lien claims from unpaid subcontractors on the same project, totaling $950,941.22.
Subcontractor Noah Concrete Corporation filed the largest lien against Angeles Contractor on July 29th, claiming they are owed $643,683.
Back on April 17, 2020, Santa Cruz Underground & Paving, Inc. filed the second largest claim against the GC, valued at $229,924.45.
On May 22, 2020, subcontractor Penhall Company filed a $43.2K lien against Angeles Contractor. The fourth lien filed against the GC is valued at $34K and was filed by Triad Fire Protection System, Inc. on July 8, 2020.
Additionally, subcontractor Norman S. Wright Mechanical Equipment Corp. filed a lien valued at $33,662.64 on May 19, 2020, against Coolmart Group, Inc.
Courtyard Marriott Project Under Development For Over a Decade
According to a report published by the Santa Cruz Sentinel in 2016, the Courtyard Marriott in Santa Cruz has been “in the pipeline since 2008.”
The 2016 report also states the new Santa Cruz Courtyard Marriott is slated to include 151 rooms and will be four stories tall. In order to construct the new Courtyard Marriott, developers demolished three motels in 2016.
Developer Lotus Management reportedly applied for the building permit for the Courtyard Marriott back in 2015, according to the Santa Cruz Sentinel. That same year, the construction was valued at $34.7M.
Marriott International Struggles Financially During COVID-19
Amid the COVID-19 pandemic, Marriott International is taking a hit financially. According to Yahoo Finance, Marriott International’s Q2 revenues are down 73.8% from a year ago. The company is expected to post a loss of $0.44 per share in Q2 of 2020.
In response to the pandemic, Marriott International has begun to require the use of a facial mask upon entering all of their 7,300-plus locations worldwide as of July 27, 2020.