BUFFALO, N.Y. (WKBW) — A Rochester-based construction company is suing the developer behind the Heritage Point development project at Canalside for more than $4 million.
Pike Construction Services has filed a complaint in New York State Supreme Court against Heritage Point Canalside, LLC, a subsidiary of Sinatra & Company, seeking $4,771.876.97 for breach of contract, among other claims.
This is the latest challenge for the $40 million mixed-use project, spearheaded by Sinatra and Company Real Estate, which broke ground in 2021 but has faced financing issues and delays, and has remained stagnant since March 2024.
WATCH: Sinatra & Co. says work will resume on stalled Heritage Point project at Canalside this summer
In a statement to 7 News, Pike Construction Services said in part, "Pike and the entire subcontractor community have been very patient, but after several months of no response we felt it necessary to protect the interest of Pike and the subcontractors who have not been paid for well over a year. This action was not taken lightly. Our intention in taking legal action is to ensure a fair resolution to this matter."
Sinatra & Company disputed the amount that Pike was asking to be paid in a statement to 7 News, with Matt Connors, VP of Development for Sinatra & Company adding "we fully expect Pike's lawsuit to be resolved in the regular course of closing upon new construction financing, albeit with the undue distraction now created by this development. Most importantly, this lawsuit does not in any way fundamentally change our efforts or plan for getting new financing in place and re-commencing construction, a milestone that we are rapidly approaching."
The Erie Canal Harbor Development Corporation declined to comment.
According to the lawsuit, Pike Construction Services and Heritage Point Canalside LLC entered into a construction management agreement for the project in January of 2022.
In May 2024, Pike and Sinatra & Company, acting as Heritage Point's authorized representative, agreed that Pike would cease work on the project and vacate the job site due to "insufficient payments and Sinatra's failure to secure the necessary financing."
In February 2025, the parties agreed to terminate their agreement, and that Sinatra & Company would act as its own construction manager.
Pike submitted a "pay application" on February 21st, 2025, for "direct and indirect costs."
On April 11, 2025, "in light of Heritage Point's failure to act," Pike submitted a revised pay application totaling $4,771,876.97.
The lawsuit was filed on May 30, 2025, claiming breach of contract, unjust enrichment, account state, and violation of the New York Prompt Payment Act.
You can read the full statements from Pike Construction Services and Sinatra & Co. below:
"On May 30th, 2025 Pike Construction Services (Pike) filed a lawsuit against Heritage Point Canalside, LLC due to a prolonged failure to remit payments owed for services provided under a construction contract. Pike and the entire subcontractor community have been very patient, but after several months of no response we felt it necessary to protect the interest of Pike and the subcontractors who have not been paid for well over a year.
This action was not taken lightly. Our intention in taking legal action is to ensure a fair resolution to this matter.
As this is now an active legal matter, we will not be providing further comment at this time."
"Over the course of the past several months, Sinatra Development Company, LLC, (SDC) the owner’s representative on the Heritage Point Canalside project (the “Project”), as well as the principals of the Project, have been in continuous contact with The Pike Company ("Pike") in an effort to transition the role of construction manager.
This transition is part of the planned remobilization effort at the Project whereby SDC will assume responsibilities as construction manager when new construction financing is secured. Recently, while that dialogue had been steadily progressing, representatives of Pike and the project ownership have been working to resolve differences in the parties’ respective project accounting, including amounts to be paid to Pike from the new construction financing. Resolving such accounting differences is critical to closing new construction financing and necessary to implement our plan to restart construction. Through this process, SDC pointed out certain errors in Pike's accounting which have since been acknowledged by Pike.
We were disappointed to learn today through media inquiries that Pike commenced suit against Heritage Point Canalside, LLC ("HPC"), a development that we have to assume is nothing more than a bargaining tactic, in what has otherwise been mutual and productive negotiations concerning transition.
Importantly, this lawsuit does little more than publicly state Pike's position as to how much it believes it is owed and desires to be paid at closing of the new construction financing, items which are hardly new or newsworthy.
Though we dispute the amount that Pike is asking to be paid, we fully expect Pike's lawsuit to be resolved in the regular course of closing upon new construction financing, albeit with the undue distraction now created by this development. Most importantly, this law suit does not in any way fundamentally change our efforts or plan for getting new financing in place and re-commencing construction, a milestone that we are rapidly approaching."
