Moreno Valley: General contractor's departure said no threat to Skechers center progress
J.D. Diffenbaugh, a Riverside-based general contractor that has been building the 1.8 million-square-foot Skechers distribution center in Moreno Valley, has moved out of its Riverside headquarters and warned the developer of the building that it wouldn't be able to finish the project.
Nonetheless, J.D. Diffenbaugh is still considered the project's general contractor, albeit on an interim basis, said Danette Fenstermacher, chief operating officer and executive vice president for Highland Fairview. Signs with the company's logo were still visible on the property Wednesday afternoon off of Highway 60 in a section of Moreno Valley called Rancho Belago.
Safeco, the insurance company affiliated with Liberty Mutual that secured a $58 million surety bond for the project, stepped in to oversee Diffenbaugh's operations, said Fenstermacher.
The company had come under fire recently when a subcontractor who did grading for the Skechers project claimed she wasn't paid $1.49 million of what she was owed. Liens and lawsuits have stacked up since.
Fenstermacher said Diffenbaugh's difficulties wouldn't affect the project's completion by July 1. She said Highland Fairview has continued to make payments as normal and recently made direct payments a couple times to subcontractors to assure the funds were transferred in a timely manner.
Fenstermacher said Highland Fairview worked with Safeco to make sure Diffenbaugh staff that had been working on the project, remained with the project.
There's no record of Diffenbaugh or its owners filing for bankruptcy, and Fenstermacher said she hasn't been warned of any forthcoming bankruptcy filings.
Diffenbaugh had 320 employees as recently as 2007.
A statement issued Tuesday evening by Highland Fairview's CEO, Iddo Benzeevi, though, said Diffenbaugh would "no longer be able to continue with their work" on the Skechers distribution center, but that wouldn't affect the project or its scheduled completion.
Diffenbaugh's "departure" was attributed to "unforeseen personal and financial issues" for the contractor's owner, according to the statement from Benzeevi.
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Since: Oct 08
#1 May 5, 2011
"Fenstermacher said Diffenbaugh's difficulties wouldn't affect the project's completion by July 1. She said Highland Fairview has continued to make payments as normal and recently made direct payments a couple times to subcontractors to assure the funds were transferred in a timely manner."
I guess that's why none of the Mechanics Liens have been cleared and on April 27th three new law suits were recorded against this project.
"Fenstermacher said Highland Fairview worked with Safeco to make sure Diffenbaugh staff that had been working on the project, remained with the project."
Safeco? When did they become licensed to contract in the construction trades?
The work on this project was turned over to J.D. Diffenbaugh as the General Contractor in charge of the project, Highland Fairview is a mere customer of Diffenbaugh.
The question is, who assigned their license over to Safeco, and did Safeco then apply for and get granted a license to contract?
Safeco has no authority to subcontract with any contractors, for they are not a licensed contractor themselves, and at this point, who knows if those who Highland Fairview asked Safeco to keep on are licensed to perform any of the work on this project?
Furthermore, Jack R. Stones one of the RME's for Highland Fairview, is also listed as an employee of J.D. Diffenbaugh as one of their many project managers.
Nothing wrong there, however he can't use his license for any other entity such as Safeco, or J.D. Diffenbaugh. As he wasn't an RME for Diffenbaugh, his license was okay to be used for Highland Fairview, a company which got caught with its pants down by the citizens of Moreno Valley for not having any responsible managing employee (RME).
What kind of game is going on here I wonder.
#2 May 5, 2011
mvgordie, you do such excellent work keeping the citizens of Moreno valley informed, or at least the ones who truly care about what is happening in this city, and I'm not speaking about those hand full of individuals, who form little committees to keep an eye on the city's checkbook etc, any where they can turn for a free handout. Those are the individuals we do not need in our city, they are like parasites, they feed off the back of others.
You have made reading the blogs, quite enjoyable. I find your personal blog, exceptional. You have opened my eyes up to the corruption that is going on right under our noses, and has been for years. I have enjoyed getting to know some of the characters in our community through the documents that you provide.
Please keep up the good work, I look forward to see what comes next, there is no other blog out there that compares, other city's could use an mvgordie of there own.
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