Disputes Could Lead To Minn. African American Museum's Foreclosure
MINNEAPOLIS (WCCO) -- It has been more than five years since work began to open the Minnesota African American Museum.
First, there were issues with finances. Now, problems with the restoration of the building are delaying the project again.
The museum was undergoing renovation when the construction company hired to do the work walked off the job.
The company claims no payments were made for work that was done. Now subcontractors are suing to get the property foreclosed.
Nakima Levy-Pounds says walking into what is left of the museum is disheartening.
"It is a catalog of disaster. That's the only way that I can describe what's happened here," Levy-Pounds said. "This was supposed to be a simple renovation project."
She represents the museum -- or MAAM -- in a lawsuit where subcontractors are suing for money they believe the museum owes them.
They walked off the job, claiming MAAM owes $800,000.
"There was not one aspect of the project that was complete," Levy-Pounds said.
Knutson Construction hired the subcontractors to do the work. Dave Foley, vice president of Minneapolis operations for Knutson, did not want to appear on camera, but told WCCO the museum was put on notice in September of 2012 that no payment had been made, and work stopped shortly after.
Foley says in January of 2013, Knutson approached MAAM to find a way to get payment and finish the project.
He says they resumed work, but after three weeks subcontractors were not paid -- so workers walked off the project again.
Wires are left exposed, there are holes in the walls and ceilings, and the building's original woodwork is ripped apart, sitting in corners of the home.
"What type of company would begin work in a building like this, a project of this magnitude to the community and walk away and not leave the museum's dignity intact?" Levy-Pounds said.
Foley says workers had no choice but to leave. He says the situation is so bad that one of the subcontractors has begun the process to have the property foreclosed.
The attorney representing the subcontractor gave WCCO this statement: "It's unfortunate that this case has reached the stage that it has. We've been unable to work out our difference so payment can be made and trial avoided."
"Its original state was much better than the situation that we have right now here at the Minnesota African American Museum," Levy-Pounds said.
WCCO took you on a tour of the museum before restoration began back in the summer of 2012. We were told the building cost $1 million, and an additional $3 million would be needed to renovate.
There have been lots of questions concerning the organization's financial standing and the project's contributions.
MAAM provided us with copies of its audited financial statements, which show more than $1.7 million has been paid out for the reconstruction.
Knutson would not say how much they have been paid, but MAAM tells us Knutson agreed to a cap on the project that has now been exceeded.
MAAM officials say they did not pay the subcontractors due to contract disputes, concerns about overpayment and workmanship.
What happens next will be up to a judge.