Developer Sues Pinnacle Contracting Over Lost M/W DBE Credits on $9.5M Project
Date Posted: October 20, 2026
Posted In: Discussion, News,
From St. Louis Business Journal: A St. Louis developer is suing its former general contractor, alleging the contracting firm’s actions caused it to lose a city tax abatement.
Lyon Apartments LLC, an entity tied to St. Louis-based Screaming Eagle Development, filed the lawsuit against Pinnacle Contracting Inc. in St. Louis Circuit Court on Oct. 8.
Work on the Lyon School redevelopment, located at 7401 Vermont Ave. in St. Louis’ Patch neighborhood, began in 2019. The $9.5 million project converted an over 100-year-old school into 32 apartments. The city in 2018 approved a redevelopment plan for the project, which included a 10-year tax abatement at 100% of the assessed value of incremental improvements.
Project Included M/W DBE Thresholds
To receive that abatement, the developer needed to meet the minority- and women-owned business participation thresholds for the project set by the city, or prove they made a good faith effort to do so. Clayton-based Pinnacle Contracting, the project’s general contractor, was contractually responsible for ensuring the redevelopment met those goals, according to Lyon Apartments’ lawsuit.
Lyon Apartments said in its filing Pinnacle met just 0.99% of the project’s 5% women-owned business participation goal and 19.3% of its 25% minority-owned business participation goal. The developer alleged Pinnacle told the city it had fallen short of those goals in a narrative submitted as part of the tax abatement process.
Contractor Said Owner Self-Perform Shifted Goals
The city determined in 2022 that Pinnacle had not made a good faith effort to meet M/WBE participation goals. In the lawsuit, Lyon Apartments said as a result, the property lost its tax abatement for 2022, 2023, 2024 and 2025 and it had to pay almost $140,000 in property taxes for those years.
Pinnacle informed Lyon Apartments of the city’s determination in January 2024, about one month after the contracting firm was notified, according to the lawsuit. Lyon Apartments alleged Pinnacle “immediately attempted to shift blame onto the developer in an effort to evade responsibility for its own failure.” According to Lyon Apartments’ filing, Pinnacle suggested to the city the project would’ve met compliance goals if the developer hadn’t performed some of the work.
Developer Seeks $25K in Damages
Lyon Apartments said Pinnacle’s alleged negligence and breach of contract “threatens the financial future of the project.” The developer is seeking over $25,000 in damages.
Tim McLaughlin, president of Pinnacle Contracting, said in an email his company strongly denies Lyon Apartments’ claims and plans to “vigorously defend” itself in the case.
Screaming Eagle owner Matt Masiel said he hopes the lawsuit results in some financial compensation that could be used to pay for repairs at the property.
Maisel said he’s considering converting the market-rate building into affordable housing as a way to boost occupancy and potentially access tax credits and other subsidies. He said the Lyon Apartments are currently about 40% occupied.