Developer: Guarantors don’t control $50M Sioux Falls project
SIOUX FALLS, S.D. (AP) — Three guarantors with ties to an embattled company facing multiple lawsuits have little control and involvement in a $50 million mixed-use project in Sioux Falls, according to the majority owner.
Developer Jeff Lamont and Sioux Falls Mayor Paul TenHaken held a press conference Wednesday to quell concerns about the Village on the River project, the Argus Leader reported.
The move comes one week after city councilors said they were unaware the project’s guarantors had ties to Hultgren Construction, a company under criminal investigation for its role in the 2016 Copper Lounge collapse that killed one person.
Lamont said less than 10 percent of the project is owned by the three guarantors, Norm Drake, Paul Cink and Larry Canfield. The guarantors are also executives at Legacy Developments, which was the developer connected to the Sioux Falls building collapse two years ago. Sioux Falls awarded Legacy the Village on the River project earlier this year.
Lamont said he’s not concerned that Drake, Cink and Canfield were also owners of now-bankrupt Hultgren Construction because they have no control over the project.
“They have no control or no say over anything,” he said.
Lamont Companies, a hotel development firm in Aberdeen, is the controlling investor and manager of the Village River Group, LLC, Lamont said. The separate limited liability company will run the downtown development, which will include a hotel, commercial space and parking garage.
“I’m the majority owner and I make all the decisions,” Lamont said.
TenHaken said he fully supports the project after having his staff look over contracts and planning documents to ensure the city’s financial interest in the project is sound.
“I, too, like a lot of people had concerns about the process on how we got to where we are today, I’m excited about where we’ve landed,” TenHaken said. “And where we’ve landed is with an established, reputable partner in Lamont Companies.”
Information from: Argus Leader, http://www.argusleader.com