Update: City officials claim a local developer could be in breach of contract

Published: May. 3, 2022 at 12:28 AM CDT|Updated: Jun. 1, 2022 at 9:56 AM CDT
Email This Link
Share on Pinterest
Share on LinkedIn

FARGO, N.D. (Valley News Live) - Update, May 31st: Fargo City Commissioners say Roers Development has lost its $1.4 million incentive for the Newman Center Development. This come as Fargo city leaders are directing the city attorney to draft a default notice regarding the unfinished development next to North Dakota State University. Commissioners say the company will have 60 days to build the townhomes that were contracted to be finished in Dec. 2021.

The two sides met in executive session Tuesday afternoon after the city alleged that Jim Roers broke agreements by failing to construct townhomes with a full block development that included Newman Center and apartments along N. University Drive.

Original story, May 3rd: Fargo City Officials claim a local developer could be in a breach of contract after missing the deadline for the completion of a project near NDSU’s campus.

Roers Development was contracted by the city to continue the ongoing construction at the St. Paul’s Newman Center on University Drive.

This particular project also included the development of student housing and the requirement to build seven town homes in the Roosevelt neighborhood.

“The apartments were occupied in July of last year. Its been open 10 months and no work is being done on the town homes,” said Jim Gilmour, the director of strategic planning.

The contract between Roers and the city ended in December of last year.

“I think he’s lied to all of us. He lied to the Roosevelt neighborhood. This is common. That’s what big developers think they can get away with,” said Commission Dave Piepkorn.

During last night’s city commission meeting, commissioners expressed their displeasure with the project not being completed as anticipated.

“This is a breaking of a contract. When a contract is broken, its null and void,” said Commissioner Arlette Preston.

Commissioner John Strand said, “this project tested our relationship with our neighborhoods. It tested the fiber of our agreements with our neighborhoods and our people.

Jim Roers, the president of Roers development says a few factors contributed to the ongoing delays.

“The congestion began to be a real issue for us. The cost to construct those homes has greatly changed the dynamics on the numbers involved in building those seven town homes,” said Roers.

He also says he was unaware of the time restraint.

“I apologize that timing is probably not on our side.

Commissioner Dave Piepkorn was not convinced.

“We need to come down hard on a bad actor like this because clearly the intention were all along this way,” he said.

As for what’s next, the city commission voted to have the city’s and Roers legal teams meet to discuss what solutions Roers could bring to the table.

At which point, the city will have to determine if Roers was in breach of contract before weighing their legal options.

Copyright 2022 KVLY. All rights reserved.