ST. LOUIS — A former executive of St. Louis development firm Green Street alleges the company owes him $2.3 million after locking him out of lucrative contracts while also directing his construction division to cover costs on other projects.
Paul Giacoletto alleges that Green Street Real Estate Ventures’ principals Phil Hulse and Kevin Morrell recruited him in 2019 to serve as president and part owner of a specially created construction firm under the company umbrella called Green Street Building Services. But the developer used outside builders for several projects and funding from Giacoletto’s division to cover costs on others when Green Street ran out of money.
That, Giacoletto alleges, led him personally to lose $2.3 million in profit, according to a lawsuit filed in St. Louis County Circuit Court. He departed from the company in October.
“The lawsuit I have filed speaks for itself,” Giacoletto said through this attorney, Robert Jackstadt.
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A spokeswoman for Green Street declined to comment.
In the suit, Giacoletto alleges competing contractors were hired or consulted for several Green Street projects, including for an apartment project on Bemiston Avenue in Clayton and for The Rail, an apartment complex on McRee Avenue near Bar K dog park and Green Street’s headquarters in St. Louis.
For the Bemiston project, Hulse and Morrell asked Overland-based Clayco to partner with Green Street Building Services on the project. But Giacoletto’s division was later removed from the joint venture, unbeknownst to Giacoletto, according to the suit. It’s unclear whether Clayco is still attached to the project. A spokeswoman did not respond to a request for comment.
For other Green Street projects, Giacoletto alleges his construction division covered some costs for the developer’s apartments in St. Louis’ Grove neighborhood: some $650,000 in upgrades for Hue and Chroma developments and nearly $2 million in other financing costs for its Union in the Grove and Terra in the Grove projects when Green Street ran out of money.
The funding issues for the Union project “destroyed” the reputation of Giacoletto’s Green Street Building Services among subcontractors, according to the suit.
Giacoletto also alleges that the company directed another Green Street firm, HDA Architects, which operated under Giacoletto’s division, to produce and release documents without getting paid. Those projects included Green Street’s hotel and condo project in Clayton with hospitality firm Midas, in order to protect Green Street’s relationships with other developers.
Midas did not respond to a request for comment.