Tuesday, October 12, 2010

The Trouble With Fresno's Business Climate....

Is trusting a rock star with anything:
Developer Milt Barbis and two companies associated with building Fresno's Cabo Wabo Cantina have filed a federal lawsuit that blames rocker Sammy Hagar and others for the demise of the short-lived restaurant and nightclub.

The lawsuit, filed in U.S. District Court in Fresno, seeks close to $589 million from Hagar, his Red Head Inc., two other businesses and an individual.

...Barbis' lawsuit describes a disastrous and chaotic string of events from the moment the contract was signed to open one of Hagar's Cabo Wabo cantinas at Granite Park.

It paints Hagar as an arrogant tyrant who threatened Barbis and micromanaged the design and construction of the cantina, which resulted in millions of dollars in cost overruns.

When Barbis asked why he couldn't use the beer and tequila that was most profitable, Hagar allegedly replied: "Because I [expletive] said so. I'm a hall of fame rock star. I can do what I want."

...Still, it was Cabo Wabo that sparked the development of Granite Park's business side. Nine additional tenants signed on, the suit says, based on Cabo Wabo being the anchor tenant.

Soon, however, Hagar and an associate were dictating construction details down to where plants and trees outside the building should be located. Hagar then demanded construction be halted for a major building change -- a 40-foot-high lighthouse on Cabo Wabo's exterior wall. Those demands delayed construction by nine months, the suit says.

...The cantina opened on Aug. 28, 2008. Hagar was supposed to appear, but contract disputes delayed his appearance. He demanded new contracts, the suit said, and a two-night appearance for around $18,500 became one night for $28,000.

Hagar played at the new club on Oct. 28, 2008. By December, the club closed after Hagar terminated the license. In January 2009, Red Head Inc. filed a lawsuit against Barbis' Fresno Rock Taco, calling Fresno's Cabo Wabo "a disaster."

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