Developer says Kennec, Inc. did not follow agreed upon scope, timeline

A developer working with the Pinoleville Pomo Nation on the casino it plans to build near Ackerman Creek said the firm suing the tribe for non-payment was fired.

"They were terminated by the tribe," said John Tang, who said he was the tribe's development partner. "We were not happy with their performance (creating a Tribal Environmental Impact Report) and hired a new firm."

Kennec, Inc. of Petaluma filed a civil lawsuit April 19 in Sonoma County Superior Court alleging the tribe did not pay the firm the total amount of compensation agreed upon in a contract signed June 15, 2009.

Kennec claims it was to be paid a total of $162,666 for preparing the TEIR, a draft of which was released last month. However, the firm alleges the tribe only paid it $117,119, and then "refused to pay Kennec for additional work demanded by (the tribe) and completed by Kennec ... and made it impossible for Kennec to earn the final $45,546 payment and $25,000 bonus contemplated by the TEIR contract."

However, Tang said Kennec exceeded the scope of the original contract and did not meet deadlines.

"We didn't agree with what they billed us for," Tang said, explaining that in January of this year the tribe terminated its contract with Kennec and hired another firm to complete the TEIR.

"We had to start over with another firm, so we essentially paid twice for one report," he said.

The proposed facility  includes a 90,000-square-foot casino, a 72,100-square-foot hotel with 125 rooms and banquet facilities , and a five-level parking garage. The tribe expects the facility will attract up to 3,500 customers a day, and employ approximately 215 people.

The proposed site is located within the Pinoleville Reservation, approximately one mile north of the Ukiah city limits and adjacent to the U.S. 101 bridge at Ackerman Creek. North State Street is the main access route to the project site from U.S. 101.

Kennec's lawsuit claims it is owed $90,959.40 for compensatory damages and $70,546.48 in consequential damages for a total of $161,505.88, along with interest, reasonable attorneys' fees and other costs.

The tribe filed a "Motion to Quash Service of Summons," but July 9 it was denied, according to Sonoma County Superior Court records, allowing the lawsuit to move forward.

Justine Frederiksen can be reached at udjjf@pacific.net or 468-3521.