More delays on Moody Housing Project - WALB.com, South Georgia News, Weather, Sports

More delays on Moody Housing Project

March 13, 2008

Valdosta - Bad news for many subcontractors in Lowndes County. It could be several more months before a new contractor begins work on a stalled Moody Family Housing Project.

Representative from Congressman Jack Kingston's office say the Air Force found a new contractor for the project but the former contractor hasn't signed off on a deal for them to take over.

The Carabetta Group was initially hired to build 600 new homes for airmen at Moody Air Force Base. Work stopped when they stopped paying sub-contractors.

Those Valdosta-area companies are still owed millions of dollars.

Senator Saxby Chambliss questioned Air Force officials in a hearing Wednesday about why nothing was done.

The Carabetta Group "was also heavily involved in Navy and Army projects.  Projects for both ran into trouble.  Although they ran into trouble the Navy and Army straightened their matters up within a matter of months and from what I understand, the problems were resolved.  For the project at Moody Air Force Base, the project owner was in a state of technical default for a year and a half, never delivered a single home and obscured millions of dollars in debt before any decisive action was taken."

Negotiations continue. The Air Force hopes to have a letter of intent signed with a new contractor in the next two weeks and a purchase agreement a month after that.

However they don't expect the deal to close until this summer or fall.

Feedback: news@walb.com?subject=Moodyhousing

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