Two state legislators sent a letter to Attorney General Brad Schimel Monday on behalf of several local contractors raising questions about a lack of issued payments for the construction of student housing at UW-Baraboo/Sauk County and UW-Marshfield/Wood County.
State Sen. Jon Erpenbach, D-Middleton, and state Rep. Dave Considine, D-Baraboo, signed the letter to the attorney general asking for an investigation into the matter. Constituents and other lawmakers remain hopeful for these companies to receive just compensation for their work.
Bluffstone LLC is the Iowa-based company under fire for subcontracting with local businesses providing materials, service and labor and not paying for their work. The company has a lease agreement between Sauk County and the city of Baraboo, which is represented by the UW-Baraboo/Sauk County Campus Commission.
The letter specifies UW-Baraboo is not listed on the lease, but is a signer to an operating agreement for the construction with Bluffstone LLC via the Board of Regents and UW Colleges, which had representatives sign the agreement.
UW-Baraboo/Sauk County has not directly intervened because they are not a party included on the lease.
Students at both institutions are reaping the benefits of the finished projects while local contractors are frustrated with UW System’s position on the issue, explained John Nikolai of McMillan Electric.
McMillan Electric in Marshfield is one of roughly a dozen other subcontractors that have not been compensated for their labor. Nikolai was involved with the construction at both UW-Marshfield/Wood County and UW-Baraboo/Sauk County.
“Everyone is happy except the guys that put in the work. It’s morally wrong. It obviously wasn’t run properly,” Nikolai said.
Despite completion in October, he and all other subcontractors that contributed their services are awaiting full compensation. The total outstanding fees between all unpaid bills amounts to $754,000.
That amount is based off contractors that filed liens, which ensure they have a right to keep the possession of property until their debt is completely discharged. Some contractors did not file liens, which means that amount is only a rough estimate and could very well be more.
An outstanding fee of $168,000 has not been paid for the services provided by McMillan Electric for the UW-Baraboo/Sauk County housing project. A remaining $2,500 is needed for the work performed at UW-Marshfield/Wood County.
“Other legislators are pushing to look into this. People that did the work didn’t get paid and that’s a fact,” Nikolai said.
