Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Legal Update topic
No spam. Unsubscribe anytime.
Board hears update on contractor claim naming the board and on 2025 bond reporting
Summary
Board staff reported a contractor’s claim naming the board as a defendant in a payment dispute tied to demolition/environmental work on a separate project, and staff also reported state filings of 2025 bond obligations for Silverdale Baptist.
Board staff updated the Health Education Housing Facilities Board on a lawsuit filed by Demolition and Environmental Companies LLC naming multiple parties including the board, contractor Community Construction Group, the AIM Center, Espero Chattanooga LP, Cadence Bank and others. Staff said the complaint asserts breach of contract and unpaid work totaling $95,754.05 for environmental work; the board was served Aug. 27 and has 30 days to respond.
Staff said the board has an indemnity arrangement with project partners (listed as Espero Group and AIM Center) and has forwarded the complaint to those entities and counsel. Joe Kelly, counsel for project partners, said the parties were aware of the claim and were engaged in discussions with the contractor and would pursue resolution or, if necessary, file an answer and proceed with litigation steps.
Separately, staff reported they had filed required reports with the state comptroller listing outstanding debt and obligations for 2025 bond series related to Silverdale Baptist — two series (2025A and 2025B) totaling roughly the amounts stated on the agenda. Staff clarified the filing is a routine comptroller reporting requirement to track debt obligations and does not indicate a delinquency by the borrower.
The updates were informational; no formal board action was required or taken on either matter during the meeting.
