St. Cloud mediates settlement with contractor over downtown bricks

The St. Cloud City Council Thursday night approved — albeit by a 3-2 decision — a mediated settlement, which avoids litigation, with the contractor that installed bricks as part of its downtown revitalization project along 10th Street and Pennsylvania Avenue.

Council members Ken Gilbert and Lynette Matheny and Mayor Nathan Blackwell voted for the settlement agreement with Cathcart; Council members Kolby Urban and Shawn Fletcher voted against.

“I think not litigating it was a mistake,” Fletcher said. “I think for them to settle for the amount they settled for and have no repercussions. We talked about pulling the performance and payment bond, and that wasn’t even looked at. I don’t agree with it, but this is where we’re at. I’m just not happy with the way the mediation went, and that the company should be held accountable for the complete disaster they left our town.”

To this day, drivers and walkers in the area note gaps in the bricks that present a tripping hazard during walking markets, with the sand base layer coming up to the surface, and potholes in the renovated streets.

While Gilbert said he didn’t agree wholly with the settlement either, he noted that 10th Street is a major delivery artery in downtown and that this solution clears the path to quickly repair the situation, as litigation can take years.

In the settlement, the City will withhold $200,000 of the $526,000 still owed to Cathcart, and will pay the difference within 30 days. The withheld funds, along with some contingency funds remaining from the project, will cover the cost to remove the bricks on 10th Street between Massachusetts and Florida avenues and replace them with asphalt. Brick pavers will remain in the intersections.

“We’ve got to make sure the work is done right this time,” said Urban, asking for a suitable base for asphalt. “We need to make sure we are communicating as much as possible with the downtown businesses, to avoid the issues from last time.”

City officials said work could be done by the end of the summer, intersections and sidewalks will remain open, and will be done in phases to minimize the impact on 10th Street — the original work closed 10th and Pennsylvania for significant stretches, impacted businesses on those blocks to the point of asking for and receiving city help. The city’s Public Works department has also added a new employee for brick repair and maintenance on Pennsylvania and New York avenues — work will begin Monday — to make any future issues with the remaining bricks on those streets.

The mediated settlement also requires Cathcart to remove from its website and marketing materials all references or pictures of Phase 1 or Phase 2 of the Downtown Revitalization project.

In February, the city partnered with an outside law firm to potentially pursue legal action. The project began in 2022, and was delayed by hurricanes Ian and Nicole. Later, Cathcart told the city discovering underground pipes and storage tanks not found on original plans created more delays.

The City Council Thursday also approved a five-year lease with Toho Riverboat Adventures, with annual Consumer Price Index (CPI) reviews to monitor costs for water and solid waste usage. Also, in the wake of last month’s cyber attack against the city, it will submit an application to the state Local Government Cybersecurity Grant Program for $100,000 to enhance its cybersecurity risk management programs.