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McMillin: City’s Bad Math Means We Don’t Owe


Aired 4/19/09

The McMillin Companies are fighting back. Yesterday, city attorney Mike Aguirre accused the developer of inflating its labor costs to deprive the city of a share in the profits on a lucrative development project. KPBS reporter Alison St John has more.

The city attorney says McMillin Companies claimed such high costs for the Naval Training Center redevelopment project, that there was not enough profit left to share with the city. But Mark Zebrowski, an attorney for McMillin Companies, says the developer followed standard business practices -- and he flat out denies Aguirre's allegations.

Zebrowski : There's a dispute because there is nothing to dispute . He's just wrong about his math. He wants nine-and-a-half million dollars back -- or credited -- because he claims McMillin increased labor costs by 250 percent. He's wrong.

Aguirre says an auditor hired by the city reports there was a 250 percent mark-up on labor costs. The city attorney says he will pursue mediation, and if the developer won’t agree to that, he'll take the matter to court. Alison St John, KPBS news.

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