OTTUMWA HOUSING PROJECT HAS COMPLICATIONS

Ottumwa housing project has complications

A plan to build new housing in Ottumwa remains on hold while the developer and a contractor squabble over how much of the work has been done.  Des Moines-based Blackbird Investments wants to build town houses and homes on the site of the former St. Joseph Hospital.  First, the hospital has to be torn down.  Part of the building has been demolished, but the job isn’t finished.  The contractor says 90 percent of the contract is completed.  But according to Blackbird, an independent assessor says only 16 percent of the demolition has been done.  And Blackbird says there’s a discrepancy between how much they’ve been billed for…compared to the amount of work that’s been done.  Ottumwa City Administrator Andy Morris says all the City can do now is wait for the two sides to settle.

“The building needs to be taken down. That goes without saying and the material needs to be cleared off and then they need to move forward contractually then with what work they’re going to do when they get into the construction phase.”

Morris says the City is staying in touch with Blackbird and the contractor.  While Morris says he doesn’t see the City of Ottumwa taking one or both sides to court, he adds “You never say never.”

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