A California-based development company that has sought approval to annex property and build high-density student housing in Pullman faces multiple claims in court that it allegedly failed to pay hundreds of thousands of dollars to local contractors for previous construction work.
County records show at least $1.5 million in liens filed against Nelson Brothers and its affiliated real estate and construction companies since the beginning of 2020 over alleged unpaid contracts for projects in Pullman.
Nelson Brothers, which also does business as Nelson Partners and other entities, faced strong pushback on its proposed Elevate housing complex in 2019 and has recently sought annexation of 48 acres adjacent to that project, presumably for additional housing development.
The City Council will discuss the annexation again at 7 p.m. tonight (Watch here) after previously holding a public hearing on April 13.
Several local companies, including the Design West architecture firm and Moscow-Pullman Building Supply, have filed liens for allegedly unpaid work on the recent remodeling of the College Crest apartments. Those liens have led to legal complaints in Whitman County Superior Court.
Rosemann & Associates, a Missouri-based architecture firm, also filed a more than $660,000 lien against the Elevate property along Johnson Avenue in Pullman in a new legal claim for allegedly unpaid work.
Attorneys representing Nelson Brothers declined to comment when contacted by Whitman County Watch about the allegations.
When asked about the ongoing legal cases, Pullman City Administrator Mike Urban replied in an email that city officials were aware of the matters. He added he was otherwise not familiar with the company.
Design West first filed a nearly $62,000 lien in January of last year and then a civil complaint in court last summer to claim a portion of the value of the property as compensation for the alleged unpaid work.
“Despite demands for payment, Nelson has not paid Design West for sums due, an amount which will be proven at trial,” the complaint states.
Attorneys representing Design West did not respond to multiple requests for comment.
Court records also show Lewiston-based Mike’s Mechanical filed a lien of almost $380,000 against Nelson Brothers for alleged unpaid labor and material costs for work on the College Crest project.
“Although Mike’s Mechanical provided labor and materials pursuant to its contracts with Nelson Partners,” a court filing states, “Nelson Partners failed to pay for all the labor and goods provided by Mike’s Mechanical.”
Records state Mike’s Mechanical is seeking a judgment against Nelson Partners for breach of contract as well as more than $390,000 in compensation, plus interest and attorneys fees.
Pullman City Council members could not agree on a path forward during the April 13 discussion of Nelson Brothers’ annexation request. Several members expressed uneasiness about the potential property development, but they split on how best to approach the issue and delayed any action.
“This does make me very uncomfortable,” Councilwoman Eileen Macoll said. “We need to watch this very, very carefully and see where these people go with this.”
The council is scheduled to again discuss the matter at 7 p.m. tonight. Watch the meeting live here. Read the city staff reports and other documentation regarding the request here.
Bob Perdue, who has represented Nelson Brothers in the Elevate and annexation matters, argued earlier this month that annexing the property would give the city more control over the proposed development. Bringing the project into the city would also result in new significant tax revenue.
“It actually benefits the city of Pullman,” he said.
Pullman residents have voiced a number of concerns about the proposed Elevate project as well as the recent annexation request, citing increased traffic, accessibility and transparency concerns.
“I’m not opposed to growth,” resident Nancy Mack told the council, “but I prefer smart growth.”
Mack also challenged city officials to do better to solicit citizen feedback and guide responsible development. Several residents called for improved notification and transparency from the city on permitting and development applications.
They said the recent annexation notification signs were posted far off the road where they could not be seen. The Planning Commission also reviewed the annexation request just days before Christmas when citizens were likely to be distracted.
Read our previous reporting on the Elevate project here.
UPDATE, April 28: The City Council has voted to reject the annexation request and has asked for a review of the city’s current pre-zones (such as R3 residential, commercial, etc.) on property adjacent to the city limits. Those proposed zonings on future annexation properties were last set in 2013.
There is criminal activity by the Nelson Brothers. There is no reason to think they will change their stripes. Cut these unhealthy ties sooner than later. And why are we giving business deals to out of towner’s? Keep our money in the state.