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Contractor sues developer, St. Paul over project
Flannery Construction disputes its firing from an indoor farmers market-condo complex in Lowertown.
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The contractor fired from an indoor farmers market and condo project in St. Paul has sued the developer for breach of contract.
Flannery Construction's suit seeks $1.1 million from Sweeney Development, developer of the $13 million Farmers Market Flats at the corner of Wall and E. 5th Streets in Lowertown. The suit also names the city of St. Paul and the city's Housing and Redevelopment Authority (HRA).
Sweeney Development fired Flannery in early March after the contractor suspended work. The parties disagreed over who was responsible for about $2 million in added costs.
Flannery says it was within its right to stop work because the developer failed to pay outstanding costs and secure proper funding. Its termination was "wrongful and without cause," according to the suit.
Brian Sweeney of Sweeney Development said Monday that Flannery was fired because it defaulted on the construction agreement. He said his lawyers would weigh options for responding to the suit.
"This is a very sad day for those of us who have worked diligently to build a new indoor farmers market," Sweeney said.
The city and the HRA had pledged up to $1.4 million in financing for the project.
Flannery claims the city and the HRA have been trying to damage the contractor's reputation in the community, effectively banning it from doing work in St. Paul and causing a loss of revenue.
"This is, for the most part, a dispute between the developer and contractor. With respect to the allegations against the city and HRA, we are confident that the city did nothing wrong, and we will defend the city and HRA's interests in this lawsuit vigorously," said City Attorney John Choi.
Sweeney said the project has endured several bumps over the past decade. "This is our last hiccup, and we will get to the other side of it and build it for St. Paul," he said.
A new contractor, Frerichs Construction, is working with Sweeney, who said he's confident the project will be finished by summer 2009.
Farmers Market Flats is planned to have a 15,000-square-foot indoor market area -- which would be owned by the city and leased to the St. Paul Growers' Association, which runs the market -- and 48 condo units.
Chris Havens • 651-298-1542
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