Village of Potsdam, developer are sued over new water tower

CANTON — An Indiana company has filed suit against the village of Potsdam and a Skaneateles developer, claiming it wasn't fully paid for work done in constructing a water tower behind the Lowe's store on Route 56 in Potsdam.

The lawsuit was brought by Phoenix Fabricators & Erectors Inc. of Avon, Ind., seeking $112,829 against Jeda Capital-56 LLC of Skaneateles and the village, St. Lawrence County clerk's office records show. The company says it was paid $545,171 out of the $658,000 it was owed.

Jeda Capital hired Phoenix for $643,000 in February 2008 to construct a 300,000-gallon water tower for the village to use. The project's cost increased by $15,000 because of more painting that was needed on the water tower, records say.

The village of Potsdam had planned to lease the water tower from Jeda Capital over 20 years. The water tower has been in operation since Oct. 31, and was connected to the village's water system.

"Phoenix has demanded payment for such work performed, but Jeda and the village of Potsdam have failed and refused to make payments to Phoenix," the lawsuit says. "Jeda and the village of Potsdam were benefited and enriched by Phoenix's work and labor erecting the water storage tank."

Community Bank filed notice in January that Jeda Capital had defaulted on an $825,000 bank loan used to fund construction of the water tower. Community Bank recently approached the village of Potsdam about buying the water tower. Negotiations are ongoing.