Jury awards City of Minot more than $2M for losses after contract breach from parking structure contractor

Local News

A jury ruled in favor of the City of Minot, awarding the city more than $2.4 million for unpaid rent and excess costs incurred by the city during the construction of parking structures dating back to 2011.

The dispute involved a public-private partnership project with Cypress Development, LLC that included the development, design, and construction of two downtown parking structures.

“We’re glad to have this issue behind us after investing so much time, money, and emotion into
these structures,” Minot Mayor Shaun Sipma said. “Now we can focus on moving forward for
the benefit of the city.”

Back in 2011, the city and Cypress entered into a series of agreements pursuant to which Cypress agreed to develop, design, and construct two mixed-use developments including parking, retail space, and apartment homes on city land.

The City of Minot agreed to contribute $4,937,500 per structure from a combination of MAGIC Fund and
federal funds towards the construction of the parking structures.

The Renaissance and Central parking structures opened in 2016, but Cypress did not complete the retail space and apartment homes.

The city terminated its contracts with Cypress and filed suit for breach of contract in March of 2018.

The city has managed and operated the structures since then. Cypress’ countersuit, which was denied by the jury, sought more than $50 million in damages related to excess construction costs and lost profits.

Sipma said efforts will begin to find a partner to construct apartments on top of the two structures.

Copyright 2021 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Latest Local Sports News

More Local Sports

Latest State News

See More State News

Latest National News

More National News


More Don't Miss

KX News Trending Stories