The Susquehanna Art Museum (SAM) in Pennsylvania opened its doors earlier than expected, but now the contractor who built it and the bank that financed it are arguing over who should get paid first.
The museum owns Fulton Bank $3 million for helping to finance the project, and SAM allegedly failed to make a principal payment of $1.5 million by the March 8 deadline.
Contractor JEM Group is claiming the museum owes it $1.2 million. The contract between JEM Group and the museum stated cash was reserved for reimbursement of construction costs.
The museum has $1.2 million left in state funding to cover the costs, but could be afraid of a lawsuit from Fulton Bank.
A hearing for arbitration between the bank and the contractor will be set.
