NORFOLK -- Construction has halted on a 14-story downtown Norfolk office building because the developer has failed to pay the contractor.
Galloway Corp. of Virginia Beach notified Rowe Development that it would no longer honor its construction contract because Rowe had missed payment on the $2.8 million owed the construction company.
"We'll be interested in more than the money that is owed us," said Donald H. Clark, an attorney for Galloway.
"We'll want some indication that they're capable of going forward with the project."
The First American Financial Center was to cost $40 million and was to serve as the regional headquarters for First American Bank.
Earlier in the year, the McLean-based bank said it was pulling out of the Hampton Roads area.
The office building is 75 percent complete.
"We remain hopeful that we can get the project going again," said Deborah K. Stearns, a Rowe vice president.
According to financial records, the development company is facing a severe cash flow problem.
Last week a Rowe development, the Peninsula Center office complex in Newport News, filed for protection from creditors under Chapter 11 of the federal bankruptcy law.
Rowe has a staff of 50 with offices in Virginia Beach, Washington, and Nashville.