16th Crossing developer fires back

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MINOT, N.D. - The dispute over a southeast Minot affordable housing development continued Monday, as the developer spoke out against claims from the city of Minot.

To bring you up to speed...

Last week the city announced it would be taking "corrective action" against Nathan Smith, who runs 16th Crossing.

The city argued that that Smith had failed to finish the development and jeopardized federal funding for the city in the process.

Smith responded, saying he had complied with the city and the city caused delays with infrastructure work.

Our Candese Charles covered Smith's press conference this morning... and brings us the latest.

This affordable housing project in southeast Minot lies at the center of a dispute between its developer and the city of Minot, who says the developer didn't finish it, risking a loss in federal funds for the city.

"That decision was based on the fact that the developer failed to meet the requirement of their development agreement. The plan was that the proposed development would include to complete 89 of the 178 homes by 2021, which is half of what the actual development agreement required," said Derek Hackett, Minot public information officer.

But Smith has said the city caused those delays, and he brought these documents to prove it.

"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 Nathan Smith, 16 Crossing, LLC Developer.

"There's no denying there was a delay but here's the reason why. There was an initial bid for the project which was about $2.9 million over the cost estimate and the city worked with the developer to re-bid that project which saved both of the parties significant money," said Hackett.

The city said it had invested $5 million from the HUD grant along with nearly $1 million of its own, money Smith says he has not seen.

"I've never gotten one cent of federal dollars not one penny this is all built with our funding, our financing, our overhead," said Smith.

Smith said the dispute is between him and the city, and said it will not impact current residents of the development.

We reached out to the city of Minot for a response, but they can't comment on the documentation until they see it. And as for the federal funding, the city says that money was for the infrastructure put in place to allow for the development.