APPLETON -- A project to replace the roof and remodel portions of the Appleton Civic Center is nearing completion, but legal issues surrounding the project are a long way from being resolved. There is a criminal investigation underway into allegations that bonds submitted for the project by the original contractor were forged, according to Appleton City Attorney Harold Hohman.
And, he said the city is contemplating civil action of its own against the original contractor.
Council members previously authorized the attorney to pursue action against Olympic Construction of Prior Lake. The city believes that the inability of Olympic Construction to fulfill its contract and complete the project could raise the overall costs to the city significantly. It could seek to recover its damages, the attorney said.
The city had awarded a $329,000 contract to Olympic Construction for the project last year.
Problems with the project surfaced last autumn, when the contractor for the project was apparently incarcerated elsewhere for charges unrelated to the Appleton project, according to Hohman.
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A new owner continued work for the company, but subcontractors told city officials they had not received payments for materials and services. On Oct. 23 the company informed the city it could not carry out the project.
The company's attorneys also informed the city that bonds for the project may have been forged. The bonds had been provided to the project architect's in Alexandria, and were required to assure payment and performance of the work by the contractor, according to Hohman.
Since the alleged forgery is believed to have occurred outside of Appleton and Swift County, the investigation into possible criminal action was turned over to a multi-jurisdictional law enforcement task force.
The city has not received any word on whether or not criminal charges will be pursued at this point.
Hohman said any decision on whether to pursue civil action against Olympic Construction will likely not be made until after the project is completed, and the city knows its full costs.
Fortunately for the city, a mild winter has allowed a new contractor to complete much of the project. Appleton City Clerk Roman Fidler reported that the Civic Center roof had been covered well in advance of the arrival of the brunt of winter, thanks to work by Innovative Builders of Alexandria.
City council members took emergency action last October 27 to hire the company to finish the roof and remodeling project, according to city council minutes.
Council members approved a contract with Innovative Builders to pay for work on an hourly rate, and to guarantee a $30,000 in profit and overhead costs for the company.
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Fidler said the roof itself has been covered for about three weeks. Work on the south wall of the building is 95 percent complete, and work on building a handicapped accessible bathroom is nearly completed as well. New cupboards and cabinets have also been installed.
There remains some exterior wall and panel work, as well as landscaping.
Fidler said it probably will not be until late spring or early summer that the city knows its full costs for the project.
The Civic Center holds the Appleton City offices, police and library, as well as offices for the Upper Minnesota River Valley Regional Development Commission.
