Hermosa, CCH being sued over pipe
Published: Thursday, February 21st, 2013
The Custer County Housing and Development Commission (CCH), CCH director Connie Gorsuch, Advanced Engineering and its owner, Ron Bengs and the Town of Hermosa are all defendants in a lawsuit filed with the Seventh Judicial Circuit Court in Custer filed Jan. 23.
The lawsuit, filed by Rapid Construction in Rapid City, claims the defendants owe Rapid Construction $241,543 for pipe the company purchased for the upcoming sewer line expansion project in Hermosa.
The lawsuit claims that on Nov. 17 Gorsuch named Rapid Construction as low bidder for the project, which was aimed at expanding sewer service under Hwy. 79 in Hermosa to the west. Once that infrastructure was in place, CCH wanted to pursue developing senior housing in Hermosa with the help of South Dakota Housing or through the U.S. Department of Agriculture’s Rural Development Program. However, those entities required the needed infrastructure before they would get involved.
Beginning in November 2005, Rapid Construction, at the behest of Gorsuch, ordered the pvc pipe and other materials necessary for the project. The lawsuit further states that it was Bengs who insisted Rapid Construction immediately order the pipe and materials, because Hurricane Katrina had wiped out pvc plants. Gorsuch advised that Bengs was insistent, because he felt there would not be pipe available to complete the project and Gorsuch, relying on Bengs, directed Rapid Construction to order the pipe and materials.
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