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2nd lawsuit filed against PTC for tennis center’s unpaid bills

By J. FRANK LYNCH
jflynch@theCitizenNews.com

One of Fayette County’s highest profile companies and the architect responsible for expanding the Peachtree City Tennis Center are the latest to sue Peachtree City and its Development Authority, claiming breach of contract for nearly a quarter million dollars in unpaid change orders related to the expansion.

Group VI Associates, headquartered in Westpark in Peachtree City, and Foley Design Associates Architects of East Point filed a joint lawsuit in Fayette County Superior Court on Sept. 8.

The suit alleges that they together are owed nearly $229,000 for unpaid expenses that were not part of the original $2.2 million contract with the Development Authority to expand the Tennis Center.

The claims include interest accrued over the past two years, court documents indicate.

Specifically, Group VI claims it is owed $202,734.02 for costs related to five change orders approved by former DAPC Executive Director Virgil Christian between May 2, 2002 and Oct. 31, 2002.

Foley Designs claims it is owed $26,212.04 for design costs related to the change orders as well.

Copies of the change orders included in the court filing show the biggest expenses were related to finishing up the ground-floor “tenant” space in the Tennis Center clubhouse, to the tune of $54,144. That space is now occupied by Clayton State University’s Fayette County Higher Education Center.

Other added expenses involved making changes to the clubhouse lighting ($52,850), landscaping and irrigation design and installation ($21,426), and paving of the south parking area behind the indoor courts ($12,329).

Copies of the change orders show Christian’s signature as representative of the DAPC, but Mayor Steve Brown said Christian didn’t have the authority to make those changes. Additionally, the DAPC’s Board of Directors was never consulted on them either, Brown alleges.

The City Council had no idea of the cost overruns associated with the project as well, Brown said, and thus the city bears no liability.

“We in fact had no idea (the DAPC) had expanded the scope of the work and were going over budget,” Brown said last week in reaction to the suit. “The whole time we were in contact with the DAPC and Virgil Christian, we told them not to go over budget.”

Added Brown, “They’re claiming the city was ultimately responsible for the actions of the DAPC.”

Under the advice of former Mayor Bob Lenox, the City Council in the fall of 2001 agreed to finance the expansion of the Tennis Center using a “bricks and mortar” loan obtained through the Georgia Municipal Association.

Group VI and Foley Design were awarded the contract by the DAPC on Oct. 8, 2001. Brown took office the following January. The expanded facility opened to the public in spring of 2003.

Under mounting criticism from Brown and others last fall, the DAPC surrendered control of the Tennis Center to the city and Christian resigned.

He has since moved to North Carolina, sources say.

Another key figure in the DAPC saga was former chairman Tate Godfrey, who was senior vice president for business development at Group VI during the time he chaired the DAPC.

Brown said DAPC meeting minutes show Godfrey abstained from voting with the DAPC board to award the construction contract to Group VI.

Godfrey no longer works for the company, sources say, and has reportedly moved out of state as well.

Since January, both the Tennis Center and the Frederick Brown Jr. Amphitheater have been managed by the Peachtree City Tourism Association, the brainchild of City Manager Bernard McMullen and councilmen Murray Weed and Steve Rapson.

City Attorney Ted Meeker said he had received a copy of the suit and was studying it but refused to comment. He has 30 days from the filing of the suit to respond on the city’s behalf.

William A. White of McDonough, attorney for Group VI and Foley Designs, also refused to comment pending a response from city officials.

Among the various claims, the suit alleges that on Aug. 15, 2002 the DAPC went before the City Council expressing concerns about its ability to pay certain debts, including the amounts due to Group VI and Foley Designs.

“Mayor Steve Brown provided assurance to the Development Authority that the debts would be paid from funds of the city, stating specifically, ‘the Tennis Center debt was guaranteed,’” reads the lawsuit.

The suit also charges that the city has benefited under the theory of “Quantum Meruit,” a legal term that essentially means the city has gained added value from the expansion of the Tennis Center and thus is liable for the charges regardless of who was ultimately responsible.

Brown placed the blame squarely on the officers of the DAPC and specifically Christian for authorizing many of the change orders without getting approval.

“All I know is you had a guy who was never given the authority signing off on all these change orders and major loans,” he said. “It would appear to me that the liability lies with Virgil Christian.”