Simao suing Coon; claims management was irregular

Alexandria Bay developer P.J. Simao is suing downtown Watertown redeveloper Donald G.M. Coon III for $50,000, claiming Mr. Coon breached an agreement to manage Mr. Simao's College Heights Apartments.

The company that owns the apartment complex just off Coffeen Street, Prime LLC, of which Mr. Simao is principal, filed state Supreme Court action Wednesday at the Jefferson County clerk's office.

According to court documents, Mr. Simao and Mr. Coon, a licensed real estate appraiser, entered into a management agreement in December 2003, with Mr. Coon being given control of the complex's operating account. The agreement ended in November 2006 after Mr. Simao allegedly "learned of numerous irregularities" in how Mr. Coon ran the complex.

Mr. Simao alleges that Mr. Coon allowed a person to live without paying rent in a two-bedroom apartment for 16 months without Mr. Simao's knowledge or consent.

"That's baloney," Mr. Coon said.

He claims that the tenant was the building's maintenance man and that Mr. Simao was aware of the situation. Mr. Coon said the previous maintenance man, who lived elsewhere, was paid $600 a month, but had quit after suffering a heart attack. The new maintenance man was compensated with a free apartment, about a $600 value, but was essentially on duty at all times.

"Does it matter if we pay the guy 600 bucks or he gets free rent?" Mr. Coon said. "That's all he got paid; he didn't get paid anything else. It certainly didn't benefit me any."

Mr. Simao contends that Mr. Coon also violated the management agreement by paying expenses of more than $500 without Mr. Simao's approval, something that was required under terms of the agreement.

Mr. Coon said that while the original agreement did say he needed Mr. Simao's approval to spend the sums of money, it later was decided verbally between the two men that the approval was cumbersome and not needed.

"I spent more than $500 probably more than a hundred times," Mr. Coon said. "Does anybody really think you're going to recarpet a whole apartment for less than $500?"

Mr. Simao also claims employees or contractors were overpaid and that some payments were made from College Heights' operating accounts without invoices being kept. It is alleged that many of the approved charges were for invoices in which Mr. Coon had an ownership interest, something that was not disclosed to Mr. Simao.

Mr. Simao claims that many of the invoices paid to Franklin Factory Group LLC, which owns the Paddock Arcade, and Watertown RX LLC, which owns the Chamber of Commerce building on Public Square, were "misleading, inaccurate, or wrong." It is alleged that Mr. Coon, through the companies, overcharged for services provided to College Heights.

"I basically just disagree with that," Mr. Coon said. "We charged, say, $25 an hour and he would say that's too high. I don't know where you get anybody to do (contract) work for less than $25 an hour."

Mr. Simao claims Mr. Coon violated the agreement by engaging in "deceptive and self dealing practices" and "by not carrying out his duties in a competent and honest manner."

He is asking for $50,000 in damages, plus interest.