Stinger problems continue, facing Port Authority suit

The Western News

The much-heralded partnership between the Lincoln County Port Authority and Stinger Welding, Inc., that brought the bridge and span builder to Libby is not what it used to be, as the Port Authority has filed a lawsuit seeking the company live up to the written agreement signed three years ago.

According to the lawsuit, the Port Authority is alleging breach of contract and unfair dealings with the agency that brought the Coolidge, Ariz.,-based business to Libby in 2009.

The sticking point is Stinger’s failure to abide by the initial agreement that called for the company to finance construction of its facility on property leased from the Port Authority and the Port Authority would then purchase the finished building and lease it back to Stinger.

For Stinger, the deal began to unravel when it was unable to finance the project and the Port Authority advanced $3.4 million for construction, including a lump sum that included about $1.5 million paid directly to Stinger.

The agreement called for the Port Authority to purchase the completed facility from Stinger at cost, minus, of course, the Port Authority’s contribution of $3.4 million of its own funds and obtained grant funding.

According to the suit, the loan was rejected because Stinger failed to negotiate terms on the lease agreement that were required by the Montana Board of Investments.

During its brief history in Libby, Stinger has been slapped with federal tax liens and in August it halted medical insurance for its employees.