White Lodging, the developer behind the JW Marriott hotel currently under construction in downtown Austin, has filed a lawsuit against the city and a city manager over an incentive deal which was retracted, according to the Austin Business Journal.
Earlier this year, Austin city managers chose to rescind $3.8 million in fee waivers which stemmed from an incentive agreement from 2011.
In the agreement, city leaders agreed to offer the millions of dollars in waivers in exchange for, among other things, prevailing wage for the workers on the project. Prevailing wage is a minimum wage of sorts for skilled tradesmen.
Following up on a complaint filed by the Workers Defense Project, a city investigation found that White Lodging owed workers thousands of dollars in unpaid wages.
White Lodging said they had worked in accordance to the deal as it was explained to them by an assistant city manager, but city council voted in July to uphold the agreement and cancel the fee waivers.
On Tuesday, Assistant City Manager Anthony Snipes sent a letter to Deno Yiankes, president and CEO of White Lodging, informing him the company had 30 days to refund the $688,242 in fee waivers.