The company developing two parking ramps in downtown Minot owes the city 3.4 million dollars and is considered to be in breach of contract.
That’s what Minot’s City Manager Tom Barry told city council members Monday night.
Barry says Cypress Development owes back rent as far back as October totalling over a quarter-million dollars.
The rest of what’s owed is in cost overruns related to the long-delayed construction of the facilities.
Barry says Cypress has said it can’t build apartments on top of the parking ramps – as was promised – unless the city hands over the ramps for Cypress.
(Tom Barry, Minot City Manager) “They would hold those parking ramps as collateral for the duration of the lease we have with Cypress, which has 97 years on it – at which point they promise to return the parking ramps to us. (laughter in background) So.”
(Chuck Barney, Minot Mayor) “With the track record that we have, we are not interested in relinquishing any of our assets so that they can get their financing. So I want to make that clear.”
City Manager Barry said more meetings are scheduled with Cypress officials to work out the situation.