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AGENDA ITEM 4 <br />STAFF ORIGINATOR: Mary Alice Divine <br />DATE: 12/17/01 <br />TOPIC: Consideration of Termination Agreement with H&L <br />Mesabi <br />Vote Required: Simple Majority <br />BACKGROUND: <br />In March 2001 the EDA passed a resolution declaring H&L Mesabi in default on <br />a Development Agreement and Assessment Agreement it had entered into with <br />the Authority. The company had already purchased three acres of property in the <br />Apollo Business Park before making a decision not to build its new facility. <br />According to state statute, all parties that enter intoan Assessment Agreement <br />must terminate the agreement by "mutual consent." <br />Mr. Bernard Carey, <br />president of H&L Mesabi, was advised that he must take action to terminate the <br />Assessment Agreement with the EDA, the school district and the county, or pay <br />taxes on a building that didn't exist. <br />Mr. Carey is now planning to sell the three acres of land, and as a condition of <br />sale his attorney is requesting a Termination Agreement be executed so that <br />when signed by Mr. Carey, there will be evidence of mutual consent. <br />The agreement is consistent with the resolution adopted in March, but the EDA <br />never explicitly authorized the president and executive director to sign such an <br />agreement. This action makes that authorization. <br />OPTIONS <br />1. Approve the execution of a Termination Agreement with H&L Mesabi <br />2. Do not approve <br />3. Return to staff for further consideration <br />RECOMMENDATION: <br />Option 1 <br />