Glass Half Full? Companies claim billionaire developer isn’t paying up for changes to Missouri Wine Country

AUGUSTA, Mo. (KMOV) — A billionaire developer has invested massive bucks to make one native wine city the subsequent Napa Valley.

However is the glass simply half full? Information 4 investigates has heard from a lot of individuals who say the developer isn’t fulfilling his guarantees to pay up.

Augusta is a sleepy small city about an hour west of St. Louis. There are all of the sudden a number of a sure type of signal. On the gasoline station, the storefronts, the not too long ago put in statutes, the wineries themselves, even close to the entrance gable to the historic city: The Hoffmann Household identify.

Dave Hoffmann and his spouse Jerri have their roots in close by Washington.

In accordance with Forbes, Hoffmann is the largest developer in Naples Florida. He additionally owns Hertz Enviornment and the Everblades hockey staff, properties in ski city Avon, Colorado, and dozens of corporations.

In accordance with one article, “The Hoffmann Household of Cos. buys, on common, a enterprise and a constructing each month.”

Just a few years again, they began shopping for up Augusta and deliberate to take a position greater than $150 million promising to make it the subsequent Napa.

Work began immediately: new fencing and plenty of contemporary coats of paint.

Augusta Vineyard turned brilliant purple.

They painted Mt. Nice pink.

There’s a brand new restaurant and clothes retailer.

The modifications on the town are plain to see. However Information 4 Investigates has spoken with a lot of native corporations who declare they did the work or have achieved enterprise with the Hoffmanns. They mentioned they haven’t been totally paid.

“We now have issues that our group, a few of our companies are being dealt an unfair hand,” mentioned Joe Brazil.

Brazil is the St. Charles County councilman representing Augusta. He instructed Information 4 he first heard from just some.

“Okay, the primary couple, it’s only a grievance and possibly it’s a civil matter,” he mentioned. “After which it stacks as much as over ten totally different contractors and totally different of us. Then it turns into a sample and it turns into a giant concern.”

Information 4 investigates has even realized of three lawsuits filed towards the Hoffmanns for work achieved in Augusta.

One, from Crossroads Development, claiming the Hoffmanns nonetheless owe them greater than $170,000 for work they did on a lot of properties.

One case claims the Hoffmanns owe greater than $100,000 to an organization for intensive out of doors lighting on the wineries.

One other swimsuit is from a neighborhood structure agency that was contracted to do design work on a proposed lodge in a subject on the sting of city. On maintain now, it’s nonetheless simply an empty orchard. The agency claims in its swimsuit they’re nonetheless owed greater than $72,000.

In some authorized proceedings, the Hoffmanns mentioned they deny owing any extra sums.

Eric Struckhoff is a VP with Budrovich, a family-owned, however massive native development firm. The Hoffmanns employed them to do work on the luxurious yacht, The Miss Augusta, in addition to the pilings and gangway permitting guests entry for cruises.

“However as soon as the challenge was full, there was a considerable sum of money that was on the market that was nonetheless owed to us,” mentioned Struckhoff.

Their efforts to gather, he mentioned, went nowhere for months.

“After which the telephones went chilly,” he mentioned.

Solely after they deliberate to repo the gangway and file a lien on the county did the Hoffmanns pay up, he mentioned.

“The ultimate straw, one thing we definitely didn’t wish to do. And we don’t make a behavior of doing, however we are also within the behavior of amassing our cash,” Struckhoff mentioned.

Although Budrovich has been made complete, Struckhoff instructed Information 4 he’s heard from others that haven’t.

“Don’t construct your empire on the backs of people who that may’t afford to hold you,” Struckhoff mentioned.

He’s frightened smaller corporations can’t bear the burden.

“It doesn’t take lengthy to rack up a $10,000 lawyer invoice to presumably not even gather something,” he mentioned.

The truth is, Information 4 Investigates additionally has spoken straight with a number of different corporations making related allegations, however who had been fearful to talk on the report, involved for authorized or different retaliation.

It’s not simply Augusta in query. The Hoffmanns purchased a house in St. Albans, Missouri in 2020 and began intensive panorama work on it.

“We now have by no means within the historical past of our 70 years have we gotten to this place, ever, so it’s very disheartening,” mentioned Tony Frisella, Jr.

Frisella instructed Information 4 Investigates his household’s nursery and landscaping enterprise hasn’t been paid for a considerable quantity of labor they are saying they carried out right here.

“Six figures, effectively into the six figures,” Frisella mentioned. “We’re a small enterprise, that hurts unhealthy,” he mentioned.

Makes an attempt to return to the desk, he mentioned, have gone chilly.

“It’s my final identify on there, sorry, they take pleasure of their identify, we take pleasure in our identify, we wish to be certain we’re pleased with what occurred on the job,” he mentioned.

Information 4 wished to speak to the Hoffmanns and obtained a number of calls and voicemails from David Hoffmann himself, claiming it wouldn’t be truthful to report on this and that there are two sides to each story. He and Don Simon, the CEO of the Missouri Operations initially scheduled and subsequently canceled interviews with Information 4 Investigates.

A spokesperson despatched a press release writing: “Sadly, when investing the sum of money now we have for a growth this massive, disputes occur. Whereas the overwhelming majority of our contractors have achieved a tremendous job, some haven’t. For many who haven’t, we plan on defending our rights.”

Brazel mentioned he’s nonetheless hopeful in regards to the Hoffmanns, however what he’s heard is worrisome and he mentioned he’s involved it’s an indication of what’s to return.

“It creates an issue locally when you’ve gotten someone who has taken benefit of individuals. So if that’s all true, it’s not good for our group,” he mentioned.

Information 4 Investigates did speak to some corporations who mentioned they’ve been paid in full by the Hoffmanns.

Thursday, Information 4 Investigates realized of one more firm who mentioned they’re going to file authorized motion.

After days of requests, Information 4 did get a telephone interview simply Thursday with Simon.

“They’ve been paid, possibly not paid in full. A pair are in litigation, so I can’t discuss that,” mentioned Simon.

He claimed that the explanation that some distributors weren’t paid was due to tasks not being accomplished or harm to their property.

He mentioned a dozen is a small variety of the general corporations they’ve labored with.

“We work as companions, we don’t wish to see companions get damage, however we even have a top quality of requirements and when the job is finished in a passable method, folks receives a commission.”

He mentioned he couldn’t communicate to Frisella not being paid as a result of that challenge ran by means of Jerri Hoffmann particularly, although he beforehand labored for Frisella on that challenge.

St. Charles County has filed three ordinance violation circumstances towards the Hoffmanns’ properties. One is for illicit sewage discharge, one other for zoning violations.

These circumstances are nonetheless ongoing.

Information 4 Investigates additionally discovered a authorized continuing for failure to pay a 5% tax on the rooms they hire on the market in Augusta. However we checked and as of simply final month, that’s totally paid up.

Do you’ve gotten extra details about this? E mail Chief Investigative Reporter Lauren Trager at lauren.trager@kmov.com.

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