Minot to sue developer over housing project
MINOT, N.D. (AP) — Minot is suing a developer to recoup flood disaster money invested in a housing project.
The City Council unanimously approved filing the lawsuit against 16th Crossing, Inc. for breach of contract on Monday, the Minot Daily News reported.
Minot seeks to recover nearly $6 million in federal and city dollars spent on a low- to moderate-income housing project in the southeast part of the city. Any federal grant money recovered will be available for other eligible Community Development Block Grant-Disaster Recovery activities, according to the city.
Minot entered into their agreement with 16th Crossing in 2013 to construct 178 townhomes by July 2015. The city alleges that the developer also agreed to provide 350 manufactured homes. But 16th Crossing has argued that the agreement was to set aside 350 lots that can be used for manufactured homes.
The city terminated its contract with 16th Crossing in December, saying the developer failed to meet project obligations. City officials allege the developer hasn’t made significant progress toward completing the project or offered a viable proposal to bring it into compliance.
“As we’ve said before, the city cannot ignore the developer’s failure to comply with the terms of this agreement,” said City Manager Tom Barry. “The city has a responsibility to recover the federal and city funding used on this project, and that requires moving forward with litigation.”
A spokesman for 16th Crossing declined to comment on the city’s plans to sue, saying the company wasn’t aware of a lawsuit.
Information from: Minot Daily News, http://www.minotdailynews.com