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Home > Analysis and Commentary, Business, Development, disaster, Legal, Manufactured Housing Industry, News, People > City Sued Nathan Smith, 16th Street, for Breach of Contract

City Sued Nathan Smith, 16th Street, for Breach of Contract

 

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The City of Minot ND is suing 16th Street, Inc. for breach of contract in connection with development of an affordable housing project, that includes townhouses and manufactured homes.

 

Nathan Smith is identified by KFYRTV as the developer behind 16th Street.

I am not worried about that because I am doing the right thing,” said Smith last December, per the Minot Daily News (MDN).

The project involves the use of a post-disaster, HUD Community Development block grant, issued during the Obama Administration era.

The city voted unanimously following an executive session Monday night to move forward with litigation against 16th Crossing, Inc., for breach of contract.

The city contends that the developer has failed to follow through with deadlines on the project, and claim the stalled project could jeopardize funding from the federal government.

Smith, the developer behind 16th Crossing, said in December that the city is responsible for the delays, and he has not seen any of the $5 million in federal funding the city has allocated for the project, nor the $1 million of city dollars.

 

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The city argues that Smith has failed to finish the development. That in turn has jeopardized the federal funding for the city.

Smith responded by claiming that the city caused delays with infrastructure work.

We had multiple avenues to build all of this product quickly and a market there to absorb it by the time we could things have changed I think when Tom Barry says construction of the project didn’t interfere with our building can anybody take that seriously,” said Smith.

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The Smith in Minot has a full head of hair, so is not to be confused with Nathan Smith of SSK Communities in Fort Mitchell, KY, who ironically faces his own controversies.

Nathan Smith, From Mobile Home Resident to SSK Communities Owner and President Barack Obama Connection

 

Court Filings

MND says that court filings by 1th Street claims that The Agreement is void or subject to rescission due to the City’s fraud and deceit and its failure to follow HUD requirements and Federal Regulations. City’s claims are barred, in whole or in part, as the City took affirmative steps to defeat the purpose of the Agreement, and to stall and delay the Development.”

16th Crossing has been substantially damaged by the actions and inactions of the City, has generated no profit or income from the Development, and has incurred substantial indebtedness in its efforts to move forward with the Development despite the improper actions and inactions of the City, and despite the City’s unwillingness to cooperate with 16th Crossing as market and economic conditions change,” the developer’s court documents stated.

 

The City Says…

The city sued the developer for default for failure to meet the agreed-upon development schedule. The city requested reimbursement of $5 million in Community Development Block Grant-Disaster Recovery dollars and $951,194 in city funds spent on infrastructure.

Local media reports that the agreement was for 178 townhomes, with at least 51 percent occupied by low- to moderate-income (LMI) households for three years, by May 31, 2015. The agreement also called for 350 manufactured home lots, with at least 51 percent set aside for LMI households for three years.

The city states the developer, on Dec. 4, 2017, had listed 34 townhomes as completed, of which 15 were occupied by LMI households, or 44 percent. Another 15 townhomes were unoccupied or being built. The developer had listed 349 manufactured home sites had been developed, with 183 lots leased and occupied. Of those, 131 were occupied by LMI households.

The developer lists nearly $1.15 million that it claims the city owes 16th Crossing for breach of contract.

The City of Minot responded by denying all allegations against them, and stated that 16th Crossing is not entitled to any payment from the city. An Oct. 12 scheduling conference is scheduled in North Central District Court. “We Provide, You Decide.” © ## (News, analysis, and commentary.)

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