# Signature Place developer: Don't blame me for $8.7 million repair bill



## mark handler (Aug 20, 2015)

Signature Place developer: Don't blame me for $8.7 million repair bill

ST. PETERSBURG — Joel Cantor, developer of St. Petersburg's Signature Place condo tower, denies any blame for the building's construction problems and says the $8.7 million repair bill should be paid by the architect, builder, insurers and the City of St. Petersburg.

In a letter Thursday to Signature Place owners, Cantor also said he recalls dropping off a nearly $1-million check to the city's building department to ensure the 36-story tower "was built to specifications.''

"That's a big check for many inspections,'' he said in the letter, which his company also emailed to the Tampa Bay Times.

The letter came the same day as the Times reported that owners are being assessed as much as $132,000 each to correct dozens of alleged design and construction flaws in the six-year-old building. Among them are "missing or improperly installed'' rebar as well as stucco that could fly off in high winds.

The Signature Place Condominium Association has a pending lawsuit against Cantor's Gulf Atlantic Communities, Lend Lease US Construction (formerly Bovis), a Chicago architectural firm and an engineering company.

But in his letter, Cantor shifts responsibility for any problems away from himself and squarely onto Bovis, the architect and the city.

"I thought this was a good time to explain what steps I took to ensure that Signature Place was built not only to code but above the required standards,'' Cantor said in his letter, which calls the condo tower "my baby which I put my heart, soul and life's work into.''

Cantor said his development group paid Bovis — a major international firm — nearly $500,000 for a "construction forensic consultancy'' to document every step of construction.

He said he paid Perkins + Will of Chicago, one of the world's largest architectural firms, $1.5 mllion-plus for "construction

administration'' and an on-site architect to ensure the tower was built according to plans.

And, he said, he recalls giving the city's building permit department a $986,000 check for a permit.

"I met with the city many times and told them to work with my architect to ensure it was built to specifications,'' the letter said. "That's a big check for many inspections.''

The Times story quoted Rick Dunn, the city's building official, as saying it was difficult for inspectors to check "every inch'' of a building when they have so many inspection to do. Dunn did not return a call for comment Thursday.

Cantor's letter did not mention the project's engineering firm or include it among those he said should have to pay for repairs. Dunn had told the Times that a project's owner — in this case Cantor's company — is responsible for hiring a state-licensed engineer to inspect  rebar and make the reports available to city officials. Cantor could not be reached for comment. His Gulf Atlantic Communities is inactive, but is still listed as owner of what appears to be office space in Signature Place. In his letter, Cantor calls himself a "unit owner, too'' and said he "stands willing to help the (condo) association in any way I can.''

State corporate records show that he currently heads Cantor Fund Management, a St. Petersburg-based private equity real estate firm that specializes "in the acquisition and turnaround of high quality distressed and under-performing real estate assets,'' according to its website. Its holdings include medical office buildings and small shopping centers in Tampa, Jacksonville, Pensacola, Indiana, Texas, Georgia and South Carolina.

In 2012, Cantor sold his Tampa home, where he once hosted a fundraiser for First Lady Michelle Obama, for $5.2 million saying he

wanted to spend more time at his home in Telluride, Colo., with his wife and four sons. At that time, he also owned a condo on St. Pete Beach.

Susan Taylor Martin can be contacted at smartin@tampbay.com or (727) 893-8642. Follow @susanskate

Signature Place developer: Don't blame me for $8.7 million repair bill 08/20/15

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## mtlogcabin (Aug 20, 2015)

> And, he said, he recalls giving the city's building permit department a $986,000 check for a permit."I met with the city many times and told them to work with my architect to ensure it was built to specifications,'' the letter said. "That's a big check for many inspections.''
> 
> The Times story quoted Rick Dunn, the city's building official, as saying it was difficult for inspectors to check "every inch'' of a building when they have so many inspection to do


That is a big check. However I would like to see a break down of the fees and how much was for inspections, plan review, impact fees and a whole host of others that are collected at the time a building permit is issued

We will probably spend 8 man-hours on the acceptance testing of the sprinklers, detectors, damper operation, alarms, and hoods on a 6,000 sq ft A-2 tomorrow. A 36 story building should have had a lot of inspections.


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## conarb (Aug 20, 2015)

\ said:
			
		

> That is a big check. However I would like to see a break down of the fees and how much was for inspections, plan review, impact fees and a whole host of others that are collected at the time a building permit is issued


Those of us on the other side don't really care how the AHJ spreads the money we have to pay them, back in the 50s and 60s I used to break everything down in my cost breakdown to the owners, sometime in the mid 70s I said the Hell with it and changed my cost breakdown to one line item labeled Government Fees, the guy has a point, with all the monies the AHJs are taking they are going to have to start taking responsibility for what they are supposed to be doing.


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## jar546 (Aug 21, 2015)

I'm with the developer.  The "professionals" such as the architects, engineers, contractors, plan reviewers and inspectors should be sharing the blame.  How much the permit was is not relevant in my opinion.  He hired experts to construct a project.  He is just the visionary and financier and must rely on the technical expertise of others.  Essentially he is a "layperson" in this when it comes to the technical aspect of construction.


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## conarb (Aug 21, 2015)

\ said:
			
		

> How much the permit was is not relevant in my opinion.


It certainly is relevant, we have permits based upon the premise that we are getting something for our money, in effect all we are getting is a bunch of tyranny and social engineering.  The public is for the most part unaware of this, an attorney friend had his brother build him a new house, he called to say that he went in to buy the permit and it cost him $756,000, he says the whole thing is a big ripoff.  Our cities can't pay their pension and health-care obligations, I guess they have to get the money somehow.


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## Inspector 102 (Aug 21, 2015)

As an inspector for the local government, I am one of the few that feel permit fees need to be based on the service provided and not the dollar value of a project. I have maximum charges and no where near the dollars spent elsewhere. I make it clear to the project manager that I expect a statement of completion and compliance at the end of each job and I will perform as many inspections as possible. I have probably cost the city more money than earned them by keeping permitting fees low and still provide inspections for life safety concerns. I cannot make inspections of every inch, but I also make unannounced inspections during the job. The contractors don't seem to mind and this lets them keep the project moving forward instead of waiting 2 days for an inspection to occur. Government has their role, but lets be reasonable about what we are providing. It seems like the deeper that pockets, the more the permitting fees. FYI, A single family home in my area runs about $300 for all permits. Industrial and commercial projects have a maximum of $2500 based on $.05 per SF of area.


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## north star (Aug 21, 2015)

*# = # = #*





> "I am one of the few that feel permit fees need to be based on the service provided and not the dollar value of a project."


Respectfully asking, but how would an AHJ, or even yours, go aboutensuring that the services provided are equal and consistent amongst all

of the inspection staff ?.......................In some of the AHJ's I am aware of,

they cannot even meet their basic day-to-day expenses, and to receive

continuous education & training for the whole Bldg. Dept. staff is not

realistic, and could; in some instances, get you fired or put on "The

Black Sheep List" just for asking about attending any type of training.     :-o

And even if an AHJ can afford to provide its entire Bldg. Dept. staff

"continuous training", ...that is no guarantee that Inspector Joe will

provide the same level of expertise as Inspector Jo Ann.

In my experiences, I have seen, that the level of expertise in some;

not all Bldg. Dept.  staff's,  ...could be viewed as criminal, with no real

expertise or training at all........Again, ...not all Bldg. Departments are

the same, nor is the management of those departments.

O.K., ...I'm headed back down in to the Bunker.   





*# = # = #*


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## Mark K (Aug 22, 2015)

It is easy to say that all the Professionals should share the blame and by implication the responsibility, but such statements only show the ignorance of the person making the statement.  Why should a professional who was not present when the work being done be responsible for the failure of a contractor to follow the construction documents?  Do you expect the Design Professional to be present whenever any of the work he designed is being constructed?

You should ask what role the developer played.  Did the developer negotiate cheaper fees from the designers by minimizing their involvement during construction?  Did the developer refuse to pay for other than the minimum inspections during construction?  Did the developer select the contractor based only on the lowest cost?  Why should the developer then be surprised if there are some problems?

It is easy for a developer to act irresponsibly and then to suggest that others should be responsible for the consequences of his bad decisions.


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## mark handler (Aug 22, 2015)

We really do not know what the problems are. Was it construction errors,  or a design flaw, or both. If a construction error,  was it done when a special inspector should have been there?  If a design error,  was the plan checker,  qualified,  and was it able to be seen in the submitted plans, specifications and calculations?

I have a hard time checking some calculations when the engineer just sends the conclusion sheets and no calculations because thats that the computer spits out.


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## ICE (Aug 22, 2015)

mark handler said:
			
		

> We really do not know what the problems are.


And most likely, we never will.

Dang Mark, that killed the conversation.  What we do know is that the repair bill is $8.7 million and probably climbing.  Of course $8 million of that might be lawyer fees.

When these stories come out we seldom find out what the deficiencies are.  For example there is the recent balcony collapse that killed those Irish students.  I haven't seen anything about what caused the failure.  Sure it was rotten wood but how did the water get in?


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## ICE (Aug 23, 2015)

Mark K said:
			
		

> You should ask what role the developer played.  Did the developer negotiate cheaper fees from the designers by minimizing their involvement during construction.


Are you suggesting that it is reasonable to do a halfassed job because you don't think you are being compensated fairly?


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## mark handler (Aug 23, 2015)

http://www.tampabay.com/news/business/realestate/lawsuit-defects-rampant-at-st-petersburgs-signature-place-condos/2201912

"improper construction of the penthouse unit allowing excessive noise from cooling tower.''

• Cracked and improperly applied stucco in "large areas'' of the exterior walls, which has allowed water to leak into the interior.

• Improper installation of "back-to-back" plumbing in the walls separating units.

• Tenant separation walls in many bedrooms and living rooms that tested below the "specified Sound Transmission Class rating,'' meaning the walls are thin enough that owners can hear people in other units.

• Improper installation of driveway pavers and doors on an "amenity'' deck.

• Failure to install access panels to electrical equipment for jacuzzi tubs in the condo units.


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## ICE (Aug 23, 2015)

mark handler said:
			
		

> http://www.tampabay.com/news/business/realestate/lawsuit-defects-rampant-at-st-petersburgs-signature-place-condos/2201912"improper construction of the penthouse unit allowing excessive noise from cooling tower.''
> 
> • Cracked and improperly applied stucco in "large areas'' of the exterior walls, which has allowed water to leak into the interior.
> 
> ...


Most of that sounds like it's the fault of the contractors and especially the inspector.  Architects, engineers and the developer wouldn't know any better and wouldn't be expected to know any better.

Noise transmission is a problem but I would be surprised if that is due to a faulty design.  It is more likely that items such as pipe, conduit, etc. have not been isolated from the structure or something was left out.

The missing access panels says a lot about the inspector.  That may be damned near impossible to fix without replacing the entire tub.


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## mark handler (Aug 23, 2015)

ICE said:
			
		

> Most of that sounds like it's the fault of the contractors and especially the inspector.  Architects, engineers and the developer wouldn't know any better and wouldn't be expected to know any better.Noise transmission is a problem but I would be surprised if that is due to a faulty design.  It is more likely that items such as pipe, conduit, etc. have not been isolated from the structure or something was left out.
> 
> The missing access panels says a lot about the inspector.  That may be damned near impossible to fix without replacing the entire tub.


We do not know what was detailed on the plans, nor if it were built to plan. many times there are changes, in the field that the designers are not consulted on.

These are condos, each space was custom. The whirlpool tubs could have been added later?

Soundproofing could have been compromised by workmen later during customization....We just don't know all the facts.


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## spector51 (Sep 8, 2015)

The AHJ is responsible for fire and life safety.  That being said, there are a few items on that list that fall in that category. Anyone reading this list knows what items the local  inspector should have caught.  It is a shame that construction quality assurance/quality control is not a part of most projects.  An effective program involves oversight by assigned responsible individuals at the subcontractor level, contractor level and the owner should employ a full time auditor of the contractors quality program.  The army core of engineers has a great model program that should be a part of every project of size.


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## Frank (Sep 8, 2015)

Sq ft and Dollar value are easily calculated fee basis.  A number of localities in our area, Henrico included, have gone to a fixed rate for new houses, with a $75 per inspection surcharge if over average number of inspections utilized to try to base more on service provided. http://henrico.us/bldg/fees/  Alternatively you could go to a billable hours system, but that would have several complications as well.



			
				Inspector 102 said:
			
		

> As an inspector for the local government, I am one of the few that feel permit fees need to be based on the service provided and not the dollar value of a project. I have maximum charges and no where near the dollars spent elsewhere. I make it clear to the project manager that I expect a statement of completion and compliance at the end of each job and I will perform as many inspections as possible. I have probably cost the city more money than earned them by keeping permitting fees low and still provide inspections for life safety concerns. I cannot make inspections of every inch, but I also make unannounced inspections during the job. The contractors don't seem to mind and this lets them keep the project moving forward instead of waiting 2 days for an inspection to occur. Government has their role, but lets be reasonable about what we are providing. It seems like the deeper that pockets, the more the permitting fees. FYI, A single family home in my area runs about $300 for all permits. Industrial and commercial projects have a maximum of $2500 based on $.05 per SF of area.


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