LYNNWOOD—The Lynnwood City Council Chambers were flooded with orange vests Monday, October 27, from those representing the Western States Carpenters local 425 outraged over alleged unfair labor practices at the city’s downtown ENSO project. The ENSO project is receiving $6.4 million in tax breaks from the city over the period of eight years.
In April 2024, the Lynnwood City Council unanimously approved Mayor Christine Frizzell to enter an eight-year Multifamily Tax Exemption (MFTE) for American Capital Group LLC (ACG Acquisitions), the developer of ENSO. On September 18, 2024, local union carpenters attended a City Council Work Session warning the city that projects like these often see unfair labor practices, wage theft, and tax fraud.
An investigation revealed that one of ENSO’s subcontractors, GMH LLC, has been doing exactly what the carpenters warned of by changing the hours of workers’ pay stubs, and not paying overtime despite an expectation to work more than 40 hours a week.
The video of that meeting, and subsequent warning, has since been removed by the city who, when questions why, informed the Lynnwood Times:…