Frisco Lawsuit Forces Changes to Housing Project Agreement

FRISCO, Colorado — A recent lawsuit filed by the town of Frisco against MW Golden Constructors is prompting significant changes to an agreement for a joint workforce housing project at 619 Granite Street. The lawsuit, filed on Feb. 13, alleges breaches of contract, fraud, and civil theft in connection with the project, which has a budget of approximately $12.3 million.

The housing project is designed to provide homes for local workers earning 80% to 100% of the area median income and employees of the Colorado Department of Transportation (CDOT). Previously a mobile home park, the site is critical in addressing workforce housing shortages in the area. However, issues with the construction costs have raised concerns and led CDOT to request ownership of its 11 units before completing its payment, a change from the initial agreement.

During a council meeting on March 11, town attorney Thad Renaud emphasized that actions by MW Golden Constructors have created uncertainty regarding the project’s final costs. “These actions resulted in the lack of clarity around the final construction cost,” Renaud explained. The lawsuit asserts that the total project cost should not exceed the previously agreed $12.3 million, with a completion date set for Nov. 13, 2024. Under the contract, MW Golden would incur fees of $1,450 per calendar day for any missed deadlines.

The legal complaint accuses MW Golden of abusing its managerial position by engaging in fraudulent billing practices and improper record-keeping. Notably, the suit claims the contractor billed Frisco for equipment rentals that were applied to other projects and for materials not utilized on-site, some of which were returned for refunds that MW Golden kept.

“MWG’s goal was to inflate the overall cost of the project as close as possible to the guaranteed maximum price to maximize its fee,” the lawsuit states. Following the town’s legal action, it seeks a jury trial against the contractor.

Attorneys representing MW Golden Constructors had not responded to requests for comment at the time of publication. Renaud clarified that originally CDOT was to receive ownership of its 11 units prior to the completion of the project due to anticipated knowledge of the final costs. “We are at that point, but we don’t know the final purchase price,” he noted.

The changes to the agreement, brought before council, will permit the closing of this project while allowing the town to collect the remaining fees from CDOT after the final costs are confirmed. “CDOT has already absorbed much of the cost they owe the town,” Renaud explained.

Council member Dan Kibbie raised concerns over the timeline of the issues, asking if the situation could extend over a year or more. Renaud responded affirmatively, saying, “Yes, unless it is resolved earlier.” During the same meeting, the council approved the amendment to the agreement, as well as the sale of the housing units to CDOT.