A Holbrook contractor is asking a Nassau Supreme Court judge to force the county to obtain a surety bond or pay more than $100,000 for unpaid work done to construct the Twin Rinks Ice Center at Eisenhower Park, which filed for bankruptcy earlier this year after only 14 months of operations.
Attorneys for World Cup Concrete Corp. on Tuesday served officials with a lawsuit alleging that Nassau and county Treasurer Beaumont Jefferson failed to indemnify the county during the Twin Rinks construction by not obtaining a "payment of labor and materials" bond.
The bond, required under state law for privately funded projects done on public land, would ensure that if the developer could not pay its contractors and subcontractors, a private insurance company would step in and cover the outstanding labor and materials costs.StoryRink owners make $100G late payment
World Cup attorney Marshall Stern said there is no record of Nassau obtaining the bond.
"Someone dropped the ball here," Stern said. "So at this point the county needs to get the bond or pay my client."
Nassau County Attorney Carnell Foskey declined to comment on the suit. Joel Friedman, one of the owners of Twin Rinks, did not respond to requests for comment.
World Cup was a subcontractor, hired by the Parr Organization, a general contractor based in Ronkonkoma, to install footings, foundations and concrete slabs at Twin Rinks.
World Cup was due $2.56 million for the work and has been paid $2.46 million to date, leaving the firm with an outstanding balance of $103,967, court filings state.
In June, Twin Rinks, a privately funded skating center in East Meadow, filed for Chapter 11 in U.S. Bankruptcy Court. Affidavits included in the bankruptcy filings state that the facility has been unable to "generate sufficient cash to pay its creditors on a timely basis."
Friedman had originally projected the 165,000-square-foot skating facility would cost $15 million, but records filed with the bankruptcy show that construction costs escalated to $52.1 million.
Court records show Twin Rinks owes $4.6 million to its 20 largest creditors.
An auction to sell Twin Rinks' assets -- including its 30-year licensing agreement with Nassau, signed in 2012, to operate in Eisenhower Park -- began Wednesday, with a judge's decision expected Monday.
County officials said they are monitoring the proceedings and must approve of the new operator of the skating facility.
Twin Rinks has remained open during the bankruptcy.
With Paul LaRocco