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    Thursday, May 02, 2024

    Klewin says it's owed $1.9 million for Masonicare Mystic project

    Mystic — Klewin Construction now says that the entity constructing the $32 million Masonicare at Mystic project owes the company more than $1.9 million.

    Klewin — which was the contractor for the project that will create 179 units comprised of 81 independent living apartments, 50 assisted living and 48  units dedicated to memory support — has filed a revised mechanic’s lien saying it is owed $1,931,113 for work done through March 12. Klewin also has filed a lawsuit against Senior Living By Masonicare LLC and Bessolo Design Group seeking damages and possession of the property and improvements.

    Klewin stopped work on the project March 12, saying that Senior Living by Masonicare LLC owed more than $485,000 for work the contractor had completed.

    Both the construction project and the housing facility are benefitting from waivers by the town.

    Senior Living By Masonicare LLC, which is a partnership between Masonicare and BROM Builders of Norwich, was given a waiver of the $136,000 building permit fee by vote of the Board of Selectmen.

    Masonicare of Mystic, which will own and operate the facility, will make annual payments in lieu of taxes of $140,000 and is expected to fall under the umbrella of the nonprofit Masonicare organization, according to Masonicare spokeswoman Margaret Steeves and Stonington Tax Assessor Marsha Standish.

    The selectmen voted unanimously to support the tax break. Former First Selectman Edward Habarek, who proposed the waivers, and his successor, current First Selectman George Crouse, voted in favor of the building permit waiver while former Selectwoman Glee McAnanly voted against it.

    “I voted for the project because I thought it was good for the area,” Crouse said this week. “It was a no-brainer for me as far as the economic benefit.”

    According to a document on file in Stonington Town Hall, Senior Living by Masonicare obtained a $38.2 million construction mortgage in May 2014 from M & T Bank of Buffalo, N.Y. In an email, Kyle Klewin, a partner in the Mystic-based firm, said Senior Living by Masonicare repeatedly has failed to provide his firm with any evidence of adequate bank financing, which he said is a breach of contract.

    Despite Klewin’s lawsuit, Steeves reiterated Wednesday that Masonicare is “fully committed” to the project and expects work to restart with a new contractor in the next few weeks.

    She said that the payment process called for Klewin to submit its payment requests to Bessolo for approval. She said Masonicare “has paid everything” that was approved by Bessolo.

    Crouse said that when he met with Masonicare officials last week, they told him work would restart by the middle of this month.

    “They promised to find another contractor," Crouse said. "I told them that locally Klewin has a good reputation. He’s a highly regarded local contractor."

    He said the town would not get involved in the dispute between the two parties, but will continue to ensure that the project meets all requirements.

    j.wojtas@theday.com

    Twitter: @joewojtas

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