More Headaches Ahead For Millennium Tower Developer

Julie Littman / Bisnow
Millennium Tower In San Francisco

More legal troubles are ahead for the developers of San Francisco's controversial Millennium Tower. San Francisco city attorney Dennis Herrera just sued Millennium Partners, alleging it violated the law by not disclosing the building’s settlement issues. The city attorney believes the developer may have known about the problem a year before the condos went to market, reports SF Gate.

The lawsuit is a cross-complaint for a lawsuit previously filed by the homeowners association against the Transbay Joint Powers Authority, which alleged construction by the agency led to a weakening of the foundation. Herrera claims the developer not warning prospective buyers about the issues put buyers at a disadvantage and they were virtually sold a lemon.

On Monday, San Francisco said it planned to assemble a peer review panel to look over the developer’s engineering report that said the building is safe. Last week, building officials said panels that review new buildings will no longer include consultants hired by developers. Instead, panels will include city-hired consultants, reports ABC7 News.

The city issued 90-days’ notice to fix disabled access ramps deemed too steep under city code last week, according to NBC Bay Area. The city also said the developer did not acquire proper permits to fix water damage to the concrete basement.

In early October, Millennium condo owners sought a reduction in their property taxes due to declining market values. Owners previously said their homes are now worth nothing following this controversy, but Curbed reported a top-floor unit changed hands in September for $2.3M, about $500k more than a sale back in May 2012.

The issues at the Millennium Tower led Millennium Partners to redesign its next project on Mission Street, a 45-story condo tower, to have concrete slabs driven 60- to 80-feet deep and just short of bedrock. It originally designed the project to be held up by a four-story basement garage on a bowl-shaped concrete slab. [SFG]

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