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News / Northwest

Northern Idaho city could lose stimulus loan

The Columbian
Published: January 12, 2010, 12:00am

COEUR D’ALENE, Idaho (AP) — A construction company has filed a lawsuit against the city of Coeur d’Alene, and the litigation could jeopardize the city’s $13 million stimulus loan.

The loan from the Department of Environmental Quality is intended to help cover the cost of upgrading the city’s wastewater treatment plant. The Coeur d’Alene Press reports that to keep the money, the city must have a contract with companies that will do the work by Feb. 17 — but the contract is now tied up in court.

Meridian-based Record Steel and Construction, Inc. filed the lawsuit, contending the city’s contract with the winning bidder, Coeur d’Alene-based Contractors Northwest Inc., was illegal because one of Contractor Northwest’s subcontractors wasn’t properly licensed.

The lawsuit goes before a judge on Wednesday.

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Information from: Coeur d’Alene Press, http://www.cdapress.com

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