Carnegie Management Our Best Choice?

The jumping off discussion area for the rest of the Deck. All things Lakewood.
Please check out our other sections. As we refile many discussions from the past into
their proper sections please check them out and offer suggestions.

Moderator: Jim O'Bryan

Bridget Conant
Posts: 2896
Joined: Wed Jul 26, 2006 4:22 pm

Carnegie Management Our Best Choice?

Post by Bridget Conant »

Although the city promised public input, it appears that they have unilaterally chosen Carnegie Management and Development to construct the "Belle-agio" on the hospital site.

What do we know about Carnegie, other than that the CEO, Rustom Khouri, contributed to Summers' campaign and recently hired disgraced politician Ed Fitzgerald as a "consultant." :lol:

Rustom Khouri, a podiatrist, was formerly the owner of Family Foot Care Centers of Ohio. I urge you all to go to the Cuyahoga County Court docket and search for Family Foot Care Centers. There are over 150 lawsuits.

The insurance company Aetna sued Khouri and Family Foot in Federal Court under the federal RICO statutes. Case number 1-86-cv 02791-FJB in the United States District Court Northeastern Division of Ohio.

It's understandable why Khouri decided to get out of the podiatry business. But maybe it was a jump from the frying pan to the fire?

Khouri/Carnegie was involved in the Red Tail golf and Residential Development in Avon that was fraught with problems, lawsuits, and criminal charges. Including this - a councilman indicted for bribery in the handling of the development and voting favorable to the contractor. Peter Restivo, a Carnegie official, was also indicted.

http://www.morningjournal.com/general-n ... due-nov-15

The Khouri company was also sued over a contract to build emissions testing centers.
The "Khouris" are being sued for $2.8 million dollars by Allen Telecom, LLC. The "Khouris" are being held personally liable for the debts of Ohio Environmental Development Limited Partnership, a corporation started by the Khouris in 1992.
Ohio Environmental Development LLC. was created as a partner to Carnegie Management Development Corporation.
Under this partnership, the Khouris built thirteen automobile emission facilities.
They were given a loan by MARTA to assit in the construction of the facilities.
The Khouris are being sued in a case filed in the United States District Court Northern District of Ohio Eastern Division.
MARTA, now ALLEN TELECOM, LLC. the PLAINTIFFS, brought suit in January 2006.
PLAINTIFFS are seeking $2.8 million PLUS interest, attorney's fees and costs.
The PLAINTIFFS allege the Khouris failed to repay the loan.
From here:
http://www.loraincounty.com/lorain/disc ... num=225&v=



More recent legal problems:

From 2012, problems over a building to be leased to the FBI. Here, Carnegie was operating under the name Indy Fedreau.
[In its counterclaim, Welty says Indy Fedreau concealed material information about the project, provided plans with errors and other defects, continued to change the scope and specifications of the project without agreeing to pay for the changes, and lied to Welty’s subcontractors about payments.
https://www.ibj.com/articles/33571?refe ... cles/33571



In 2014, problems on Social Security building project in West Palm Beach.
The closing follows a lawsuit filed in Palm Beach County Circuit Court in May 2013 by 23 Social Security workers against SSAB Florida Co. LLC, which owns the building at 1645 N. Congress Ave, just west of West Palm Beach. That lawsuit, which is pending, blames air-quality issues in the building for the office workers’ alleged respiratory problems.

But the building owner denies the building has any problems.

“We have done every possible test — on carpet fibers, walls, air ducts and I can tell you the physical evidence demonstrates there is nothing wrong with the building,” said Dr. Rustom Khouri, the president and CEO of Carnegie Management and Development Corp., the Ohio-based parent company of SSAB Florida. “These people are just trying to rip the system off.”
https://www.google.com/amp/www.mypalmbe ... N/amp.html

This is just a small sample of information regarding this company and it's owner, which I found rather easily using Google. There is much more, especially if all of their affiliate/subsidiary names were known and investigated.

It gives me pause. Has the city thoroughly investigated the reliability of this company?

Certainly, people get sued even when they are not at fault, but If a quick Google search has turned up this much concerning information, goodness knows what else is out there.

What most concerns me is this comment from an Avon councilperson over the Red Tail lawsuit and the criminal indictments involving bribery.
Kilroy blames Red Tail's problems on a "sweetheart deal" its developer received from Avon City Council after a Carnegie official bought valuable tractor equipment from then-Council President Ed Krystowski. Krystowski has been indicted on two felony bribery counts and faces a Nov. 15 trial on those charges.
>http://www.morningjournal.com/general- ... rnegie-now

Are they getting a sweetheart deal from Lakewood? Free land and improvements? Former Lakewood mayor suddenly appearing in their employ?
Michael Deneen
Posts: 2133
Joined: Fri Jul 08, 2005 4:10 pm

Re: Carnegie Management Our Best Choice?

Post by Michael Deneen »

Shame on you for being so cynical.
Carnegie is Ed FitGerald's group.

Has Fitzy ever steered us wrong?
Bridget Conant
Posts: 2896
Joined: Wed Jul 26, 2006 4:22 pm

Re: Carnegie Management Our Best Choice?

Post by Bridget Conant »

Steered us wrong?

:lol: :lol: :lol: :lol:

He can't even steer a car!
Bridget Conant
Posts: 2896
Joined: Wed Jul 26, 2006 4:22 pm

Re: Carnegie Management Our Best Choice?

Post by Bridget Conant »

The Social Security building was abandoned by the agency in 2014, leaving area residents without a Social Security office and its services while the Administration scrambled to find a new location. Khouri continued to deny there was an issue with the building.

I'd have to guess the issues were pretty bad for the SSA to just abandon the building.

https://insurancenewsnet.com/oarticle/W ... egq7EEpCEc
Dan Alaimo
Posts: 2140
Joined: Fri Apr 23, 2010 8:49 am

Re: Carnegie Management Our Best Choice?

Post by Dan Alaimo »

Ah, "progress."

Seriously, I wonder if they know all this. I'm sure they don't want to know it ("la-la-la-la-la-la-la-la-la"). But it would be nice if a lot of other people knew it.
“Never let a good crisis go to waste." - Winston Churchill (Quote later appropriated by Rahm Emanuel)
Bridget Conant
Posts: 2896
Joined: Wed Jul 26, 2006 4:22 pm

Re: Carnegie Management Our Best Choice?

Post by Bridget Conant »

The company seems to be a magnet for lawsuits. I often find that where there is smoke there is fire.

Is this a pattern?

http://archive.knoxnews.com/business/fb ... 2981.html/
The building was developed by Carnegie Management and Development Corp. of Westlake, Ohio, which shares an address with property owner Knoxbi Company LLC. Asked about the liens, an executive with Carnegie this week said that "ultimately, it's not an issue."

"I know exactly why there's liens and how they're going to be resolved. ? It's none of your business," he said.
Love how Carnegie Management responds to reporter's questions about the lawsuit involving their contract on a government building - none of your business!
Bridget Conant
Posts: 2896
Joined: Wed Jul 26, 2006 4:22 pm

Re: Carnegie Management Our Best Choice?

Post by Bridget Conant »

Again, a recent case involving not paying subcontractors. A pattern of issues.

Maybe the local trade unions, who supported the closure of the hospital in anticipation of construction work might not be so excited about Carnegie.

https://www.google.com/amp/www.nwitimes ... 1.amp.html

Building owner Crown Point VA, which wa ... he dollar.
Mark Kindt
Posts: 2647
Joined: Sat Dec 03, 2016 11:06 am

Re: Carnegie Management Our Best Choice?

Post by Mark Kindt »

Ms. Conant: Thank you for your excellent civic-journalism on this crucial public policy topic.
Lori Allen _
Posts: 2550
Joined: Wed Jan 28, 2015 2:37 pm

Re: Carnegie Management Our Best Choice?

Post by Lori Allen _ »

Ms. Conant,

I never knew that Mr. Khouri was in the podiatry business. I wonder if his (former) podiatry practice was affiliated in any way with the Cleveland Clinic?

Speaking of the Khouri Family, has anyone driven by the new storefront at Manor Park & Detroit recently that the mayor wanted built? Mind you, this is the same storefront with the new Domino's Pizza in it. People have been beating on the door to rent/lease the other two vacant storefronts. :D Just kidding. They have been vacant for months.

Anyway, notice on the sign out front that the real estate agent is a Joseph Khouri with CBRE? Joseph is listed as an associate of Dr. Rustom Khouri online. Given their ages, it would appear that Joseph is either a son or nephew of Rustom Khorui of Carnegie. Also, Joseph (Rustom's apparent nephew or son), was employed at Carnegie for eleven years as Leasing Director.

Maybe that is why the mayor apparently wanted that storefront built so badly.

Also, has anyone seen the house that Rustom Khouri lives in? I'm not going to post his address here, but you can look it up. It is a Lara Croft-like mansion.

What is this apparent relationship between Mike Summers at the Khouri Family? Based on what Bridget dug up, it appears they were meant for each other.
Bridget Conant
Posts: 2896
Joined: Wed Jul 26, 2006 4:22 pm

Re: Carnegie Management Our Best Choice?

Post by Bridget Conant »

My concern is how and why Carnegie was "selected," whether Carnegie is getting a "sweetheart deal," as they have been known to do in the past, what role Ed Fitzgerald plays in all this, and finally, is Carnegie the best choice for the job based on their past performance.

The city can hardly afford its legal fees now given its propensity towards litigation. If the developer/development run into problems, it could get costly.
Stan Austin
Contributor
Posts: 2465
Joined: Tue Mar 15, 2005 12:02 pm
Contact:

Re: Carnegie Management Our Best Choice?

Post by Stan Austin »

Lets get back to basics--- if the City has given away a parcel (what a primitive term to apply to the Hospital) then put the damn parcel on the market and see what it fetches
Bridget Conant
Posts: 2896
Joined: Wed Jul 26, 2006 4:22 pm

Re: Carnegie Management Our Best Choice?

Post by Bridget Conant »

Stan Austin wrote:Lets get back to basics--- if the City has given away a parcel (what a primitive term to apply to the Hospital) then put the damn parcel on the market and see what it fetches

Stan

They couldn't be bothered to put the hospital on the market. Why would you think they'd do it with the parcel and the "empty bricks and mortar?"
Mark Kindt
Posts: 2647
Joined: Sat Dec 03, 2016 11:06 am

Re: Carnegie Management Our Best Choice?

Post by Mark Kindt »

On March 24, 2017, Carnegie Management sent this confirmation to the City of Lakewood:
Attachments
No Litigation With Public Agencies In The Last Ten Years - March 24 -2017.jpg
No Litigation With Public Agencies In The Last Ten Years - March 24 -2017.jpg (266.88 KiB) Viewed 14311 times
Bridget Conant
Posts: 2896
Joined: Wed Jul 26, 2006 4:22 pm

Re: Carnegie Management Our Best Choice?

Post by Bridget Conant »

No litigation in the past ten years?

That’s seems like a blatant lie.

Of course, the city could look these cases up themselves.

I guess they do as good a job at that as they do on employee background criminal checks. :lol: :lol:
Post Reply