Friday, April 23, 2010
Has Paul Koenig Ever Paid ANYONE? (part 2)
Post and photo by the Hawthorne Hawkman
I happened to be in downtown Minneapolis today doing a bit of research, and decided to look into our friend Paul Koenig (pronounced Kay-neg) a bit more deeply. Specifically, I wanted to see what I would find out about 621 26th Ave N, which has a demolition order on it and a long list of unpaid contractors.
Several months ago, I documented how some Dream Homes had unpaid mechanics' liens, went through foreclosure, and then were repurchased by Koenig. Presumably the workers were never paid. So when it came to the contractors at 621 26th...
...I wasn't surprised at all to find even more unpaid mechanics' liens.
KB Mechanical filed a lien for unpaid work in the amount of $7,470. Wallboard Inc. filed their own lien against this property for $4,833.25. These were for unpaid work, materials, and/or use of equipment.
Then KB filed a lis pendens (basically an intent to foreclose) on the property for unpaid work at this address as well as several others: 1812 16th Ave S, 2119 4th St N, and 2316 Fremont Ave N. I checked, and all of these were already on the unabridged Pamiko list.
The intent to foreclose was for "rough-in, duct work, two new furnaces per property, gas line and furnace installation, and related work" and totaled $29,880. Also, it's quite possible that this intent to foreclose was the tipping point that caused the rate increases described in this article, which would have then led to the collapse of Koenig's entire empire. Exactly how this might have happened would bore most readers to tears, but 621 26th Ave N could very well be the Pamiko Properties' equivalent of the Piltdown Man.
Then, a few months AFTER THAT, Creative Home Construction filed a $17,102.40 lien for "home demolition and remodel labor."
And now this property has gone through foreclosure, meaning that in all likelihood the people who did this work will never be paid. I should note that in merely scratching the surface of two properties - 2321 Lyndale Ave N and 621 26th Ave N - a total of over $93,000 in unpaid mechanics' liens filed against these and ten other properties has been found. I strongly suspect that a thorough investigation of all such unpaid work would show a systematic refusal to pay contractors. I believe that the total amount of unpaid mechanics' liens against Paul Koenig's properties is well over one million dollars.
How many people had trouble staying in business after being ripped off by Koenig? The ripples of his financial misdeeds continue to be discovered.