Ghazi settles pay dispute with EpiCentre contractor

A confidential settlement was reached this week between the developer of the EpiCentre and its principal contractor, resolving a $7.15 million lien against the project.

In February, St. Louis-based Clayco Inc. filed the lien against Charlotte-based The Ghazi Co. for unpaid work. In addition, at least five subcontractors have filed liens for labor and materials for the entertainment center still under construction at College and Trade streets.

The EpiCentre, announced in 2004, is a $200 million, 267,000-square-foot complex that mixed four levels of shops, offices and entertainment venues. It also includes plans for a condo tower. A hotel is also under construction on the site.

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According to a press release sent to the Charlotte Business Journal by Ghazi Co. prinicpal Afshin Ghazi on Thursday, the settlement will clear the way for the final touches on the entertainment and office complex so additional tenants can complete their upfits and open for business. Bob Clark, a principal with Clayco, could not be reached for comment.

Those tenants include: Flemings Prime Steakhouse & Wine Bar, EpiCentre Theater, Blackfin Restaurant, Wild Wing Cafe and Presbyterian Hospital-First Charlotte Physicians. Currently, more than 50,000 square feet of retail and entertainment space is open for business, including nightclubs Whisky River, Howl at the Moon and Suite.

Ghazi claims the outstanding bills were related to work that should have been paid by Flaherty & Collins Properties, which is signed on to develop the 42-story 210 Trade condo tower as part of EpiCentre.

Officials of Indianapolis-based Flaherty & Collins couldn’t be immediately reached.

“We went ahead and just settled and paid everything and got the liens off the EpiCentre,” Ghazi says.

Flaherty & Collins and Ghazi have been battling over several aspects of the project since September.

They each filed lawsuits last month.

Flaherty & Collins is seeking more than $70 million in damages from The Ghazi Co.

Ghazi, under an affiliate called Pacific Avenue LLC, is seeking $92 million in damages in its suit against Charlotte FC LLC, an affiliate of Flaherty & Collins. Ghazi is asking the court to triple the damages for a total of $276 million.

The key issue in both suits: The manner in which Ghazi and Flaherty & Collins divided up the complex’s commercial base from its residential and hotel towers put EpiCentre in violation of state building codes, according to county officials.

While that issue still awaits a resolution, Ghazi says the settlement with Clayco is a big step forward for the development of EpiCentre.