Carmel redevelopment panel OKs $730K deal with Palladium contractor

May 7, 2014
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Carmel Redevelopment Commission members on Wednesday agreed to pay $730,000 to settle the final piece of a years-old legal dispute tied to construction of the city’s Palladium concert hall, which opened in 2011.

The agreement with concrete contractor Hagerman Construction Corp. represents a substantial savings over the $2 million or so the Fishers-based firm initially claimed it was owed for work on the project, Commissioner Dave Bowers told the panel Wednesday. The CRC took issue with that amount.

“We’ve come a long way from the original discussions,” agreed Executive Director Corrie Meyer. The deal, reached after months of negotiations that included Mayor Jim Brainard and Hagerman Chairman Jeff Hagerman, “feels like a good agreement for all parties.”

The lawsuit was a result of a disagreement over what was owed to the company "as a result of a large, complicated and complex construction project," Brainard and Hagerman said in a joint statement. 

The cash-strapped CRC will use $590,000 in so-called “retainage” funds held back during construction to pay most of the settlement, making up the difference with expected savings in its legal budget, Meyer said.

As IBJ reported in March, the commission has spent more than $6 million since 2009 “responding to, defending and settling” a number of legal claims related to the Palladium project.

In February, the CRC approved a $575,000 settlement with Bloomington-based subcontractor Crider & Crider Inc.,  agreeing to make payments through the end of next year.

Closing out the Hagerman litigation leaves just one Palladium-related lawsuit outstanding:  CRC is suing Steel Supply & Engineering Co. over Palladium roof defects that halted construction amid concerns about a possible structural collapse.

The Michigan firm, meanwhile, denies blame for the faulty design that resulted in a rip in the structural steel web supporting the venue’s domed roof. Steel Supply says that’s the responsibility of the project’s engineer of record, who is not named in the lawsuit.

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  • HenHouse
    Who was supposed to be overseeing the construction when all of this faulty design and construction work was taking place? I never hear Les Olds or Shiel Sexton being held accountable???
  • Savings
    A great savings by settling a $2 million dollar claim for $730k plus $6 million in legal bills? This kind of math is why Carmel is cash strapped.
  • Suit Expenses
    The $6 million was not all related to this particular lawsuit but all of the various lawsuits related to the Palladium. However, it certainly begs the question of who was overseeing the construction when all of this faulty work was being done. Glad I do not live in Carmel so I do not have to pay for it. Although they have tried to annex me into the tax base...many times.

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  1. I think the poster was being sarcastic and only posting or making fun of what is usually posted on here about anything being built in BR or d'town for that matter.

  2. Great news IRL fans: TURBO the IMS sanctioned movie about slugs running the Indy 500 has caught the Securities and Exchange Commission because Dreamworks had to take a $132MILLION write down...because the movie was such a flop. See, the Indy/IMS magic soiled another pair of drawers. Bwahahahahahaha! How's CARTOWN doing? HAHAHAHA...Indy is for losers.

  3. So disappointed in WIBC. This is the last straw to lose a good local morning program. I used to be able to rely on WIBC to give me good local information, news, weather and traffic on my 45 minute commute.Two incidents when I needed local, accurate information regarding severe weather were the first signs I could not now rely on WIBC. I work weekend 12 hour nights for a downtown hospital. This past winter when we had the worst snowfall in my 50 years of life, I came home on a Sunday morning, went to sleep (because I was to go back in Sunday night for another 12 hour shift), and woke up around 1 p.m. to a house with no electricity. I keep an old battery powered radio around and turned on WIBC to see what was going on with the winter storm and the roads and the power outage. Sigh. Only policital stuff. Not even a break in to update on the winter storm warning. The second weather incident occurred when I was driving home during a severe thunderstorm a few months ago. I had already gotten a call from my husband that a tornado warning was just southwest of where I had been. I turned to WIBC to find out what direction the storm was headed so I could figure out a route home, only to find Rush on the air, and again, no breaking away from this stupidity to give me information. Thank God for my phone, which gave me the warning that I was driving in an area where a tornado was seen. Thanks for nothing WIBC. Good luck to you, Steve! We need more of you and not the politics of hatred that WIBC wants to shove at us. Good thing I have Satellite radio.

  4. I read the retail roundup article and tried Burritos and Beers tonight. I'm glad I did, for the food was great. Fresh authentic Mexican food. Great seasoning on the carne asada. A must try!!! Thanks for sharing.

  5. John, unfortunately CTRWD wants to put the tank(s) right next to a nature preserve and at the southern entrance to Carmel off of Keystone. Not exactly the kind of message you want to send to residents and visitors (come see our tanks as you enter our city and we build stuff in nature preserves...

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