The City of Minot, by unanimous vote at Monday’s meeting of City Council, moved to terminate an agreement with Project BEE and accept construction costs to complete the Broadway Circle project on South Broadway. The City will be responsible for more than $1.3 million of general fund money to allocate to the project and set aside a reserve fund of nearly $500,000 as a buffer against increased costs.
Broadway Circle includes a 17-unit apartment building, a family shelter for six, and space leased to a restaurant and The Lord’s Cupboard. Project BEE was the non-profit organization in charge of the project and was to be responsible for management, including the use of federal funds dedicated to the project. However, following the abrupt resignation of Project BEE lead Elizabeth Larson recently, it was discovered that funds to meet obligations of the on-going project were not available.
“There is an active investigation going on with this,” Harold Stewart, City Manager, told the council. “We’re working with the appropriate authorities, including an active investigation by the Bureau of Criminal Investigation to determine what is fact and what is not. We prefer not using reserves to finish this project out, but we do have reserves.”
“Fiscal management of the organization failed,” said Councilman Scott Burlingame prior to the vote of the council. “We need to do our best in a horrible situation.”
Councilman Paul Pitner noted that the council should perhaps be “getting out of the real estate game discussion”. Stewart responded that alternatives to the city managing the project could be looked at in the future.
Minot citizen Rob Fuller, an announced candidate for City Council, expressed his concerns about what he termed a bailout.
“You are voting on it tonight, without any citizen input, those who are paying the taxes,” said Fuller while addressing the council following the vote. “We did that with the parking garages. Have we not learned our lesson? Who is going to run it? Then it will go back on the taxpayer again. Let someone apply to finish the project.”
Council member Carrie Evans replied, “That is a bunch of bull___t. This is about people not having a place to go. We are taking care of our people. That is who we are as a council.”
Mayor Tom Ross said, “If you let a project sit idle it goes backward quickly. Our mission is to get this past the finish line.”
