Developer, public agency sue firm over work on downtown Sacramento housing complex
In 2019, Gov. Gavin Newsom issued an executive order making it easier for cities across the state to build affordable housing on excess state land. Nearly four years later, the first project resulting from the order opened — the five-story Sonrisa in downtown Sacramento.
Officials held a ribbon-cutting ceremony and sent out a press release touting the 58 so-called micro units, at about 270 square feet each, where low-income residents would soon be living.
But a new lawsuit alleges the company overseeing construction added $1.5 million to the agreed-upon cost, partly due to paying holiday surcharges on labor to ensure “timely completion.”
Public agency Capitol Area Development Authority, which is as joint powers authority, and private Sacramento developer CFY Development earlier this month sued 19Six Architects, a statewide firm, regarding the project. The lawsuit, filed in Sacramento Superior Court, says that in 2019, CADA entered into a contract with Williams + Paddon Architects to oversee construction on the Sonrisa project at 1322 O St.
19Six Architects, which has an office in Sacramento and eight other California cities, did not respond to emails seeking comment on the lawsuit.
TriCorp, a Sacramentoa-area contractor, submitted a not-to-exceed contract price for the construction costs in 2020 for $11.5 million, which CADA accepted, and construction began, the suit alleged. While construction was ongoing in 2022, Williams + Paddon merged with 19Six and 19Six became the successor-in-interest.
From 2021 to 2023, TriCorp and its subcontractors issued over 100 change orders, adding about $1.5 million to the original construction contract price of $11.5 million, the suit alleged. In addition to the holiday surcharges, the change orders were for replacing sidewalk drains due to incorrect size in the plans, adding ADA-required features to the bathrooms, and fixing a defective installation of electrical system that was recently installed.
In addition, CADA had to pay for other damages out of pocket, not included in the $1.5 million, including replacing all light fixtures in the hallways that a contractor installed too low, and improving the gates for security during construction, the suit alleged.
The suit claims a breach of contract, breach of express warranty and negligence. It requests damages and attorneys fees.
Capitol Area Community Development Corp., CADA’s nonprofit arm, is also a plaintiff in the suit.
