Friday night the Village on the River Project is on hold and the city of Sioux Falls is bracing for a possible lawsuit.
This week the city terminated an agreement with the Village River Group, LLC.
As we discovered, this isn’t the first time a Lamont backed development corporation has been accused of owing money.
Our KELOLAND News Investigation uncovered that a subcontractor accused four Lamont-backed projects of not paying for his work.
We’ve tracked down several prior liens filed by a subcontractor against Lamont Companies corporations.
He tells KELOLAND Investigates he didn’t get paid for the framing, insulation and drywall.
Those are all projects worth millions of dollars.
The North Dakota company, Total Framing and Drywall and its owner Chad Fischer did eventually get paid for the work.
The TownPlace suites Hotel project got underway in 2014. The developer was Sioux Falls Lodging Associates LLC, formed by Lamont Companies, according to its website.
The group hired Total Framing and Drywall.
In March of 2016, Total Framing and Drywall placed a mechanics lien for more than $80,000 on the project in Lincoln County after not getting paid.
Then in September of that year, Sioux Falls Lodging Associates sued Total Framing and Drywall for breach of contract, claiming poor workmanship and failing to complete its work.
A similar scenario played out with other Lamont projects in Aberdeen.
Total Framing and Drywall took out a mechanics lien on the Northern Commons Apartments project for $60,000 after not getting paid.
Owner Chad Fischer says he also had the contract for the State Street Commons Apartments.
Once again, the Lamont developer – State Street Commons, LLC turned around and sued Total Framing and Drywall.
Total Framing and Drywall also sued Lamont based Davenport Lodging, LLC in Iowa.
All of these cases were resolved out of court and Fischer received a confidential settlement.
KELOLAND Investigates also checked on a $27 million dollar Lamont Project known as Silver Leaf in Waite Park, Minnesota.
This is a two-hotel and convention center. One hotel has opened, but a Hilton Garden Inn which was originally slated to be complete in early 2018 is still under construction.
The City of Waite Park tells KELOLAND Investigates that while the project has been slow to develop that Silver Leaf is not “out of bounds” on any of its agreements.
Statement from Lamont Companies:
“Lamont Companies constructs many properties and therefore often deals with many subcontractors at any given time. Like any other general contractor that has multiple projects underway, we periodically encounter a dispute with a subcontractor; however, we decline to comment on any particular subcontractor.
The Waite Park project when open, will be a fantastic hospitality complex. This project will offer additional lodging, entertainment, and meal choices for the residents and travelers to the area and we are excited for it to be completed.” — Sabrina Metz, Lamont Companies.