In the latest flareup, Sanford city officials told Harbco Construction Inc., an Orlando-based general contractor, it cannot use Grupo Mora & SouthCees Group de Mexico as a subcontractor to rebuild the five-mile sea wall on the planned $10.3 million Downtown Riverwalk project because Grupo Mora is not licensed in the United States.

Harbco immediately tore up its $9.1 million contract with the city and walked off the job. Sanford then quickly started talks with its second contractor choice, Wharton Smith of Lake Monroe, FL.

Only Wharton's bid was $11.3 million, a sticky negotiating wall for Sanford officials to mount, area developers watching the bizarre activity tell GlobeSt.com on condition of anonymity.

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