The prominent RiNo builder Zeppelin Development has hit a snag on a project that hasn’t broken ground.
A contractor and subcontractor say they are owed $2.36 million by Zeppelin for their work on a parking garage at Zeppelin’s 28-acre Taxi campus in RiNo, city records show.
On two occasions since March 20, Zeppelin’s attorneys have had to ask Denver judges to release two seven-figure liens and prevent a possible foreclosure on the property. On both occasions, judges did so after Zeppelin proved it has acquired a $1.9 million surety bond.
But the project’s contractor, PG Arnold Construction in Boulder, is still suing Zeppelin for breach of contract and unjust enrichment.
Separated from RiNo’s Brighton Boulevard corridor by the Platte River, the Taxi campus has been developed in stages by Zeppelin since 2001. The site, which once housed a Yellow Cab depot, now has a mix of office, residential and retail buildings.
In early 2021, company President Kyle Zeppelin told BusinessDen that his firm would be adding a parking garage at Taxi, which has relied on surface parking to date. The garage was to be southwest of a Zeppelin office building at 3461 Ringsby Court, court records show.
It’s not clear why the project never got off the ground. Reached by phone Friday, Kyle Zeppelin declined to comment. Adam Larkey, the company’s chief operating officer, emailed a statement later that day.
“While we cannot comment on any current, ongoing legal matters, we look forward to continuing our strong and productive relationship with PG Arnold,” the statement said. “Furthermore, both our commercial and residential portfolios are currently over 95-percent occupancy rates, which is higher than pre-pandemic levels.”
PG Arnold said that it has provided $1.26 million worth of labor and materials for the project and not been paid. The project’s concrete subcontractor, Stresscon of Colorado Springs, said it has provided $1.09 million worth of work and supplies, and also not been paid.
In a lawsuit filed April 25 in Denver District Court, PG Arnold accuses Zeppelin of breaching their contract by not paying the contractor and said Zeppelin has been unjustly enriched for $1.26 million, plus interest and fees that are owed to PG Arnold.
Zeppelin is represented by attorneys Christopher Dawes and Kirsten Kube with the Denver office of Fox Rothschild. They did not respond to requests for comment.
PG Arnold is represented by Denver attorney Robert Winter, a sole practitioner. Stresscon is represented by Jean Arnold and Terry Ehrlich of Arnold & Arnold in Littleton.
Last year, Zeppelin sold its The Source Hotel + Market Hall project in RiNo. In recent years, the firm has been focusing more on the high country, renovating and expanding a historic hotel in Ouray and building a new one in Winter Park consisting of individual A-frames.