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STAFF ORIGINATOR: <br />DATE: <br />TOPIC: <br />VOTE REQUIRED: <br />AGENDA ITEM 5 <br />Mary Alice Divine <br />03/12/01 <br />Consideration of Resolution NO. 01-02, Declaring <br />Default and Terminating Development Agreement, <br />H&L Mesabi <br />3/5 <br />BACKGROUND: <br />On January 24, 2000 the EDA approved a Contract for Private Development with <br />H&L Mesabi for $110,200. The contract required H&L Mesabi to complete the <br />construction of its facility by December 31, 2000. Since the approval of that <br />agreement, the company, which is based in Hibbing, Minnesota, had some <br />setbacks that changed the outlook for the construction of this metro area facility. <br />Because H&L Mesabi has not begun construction of the building in the Apollo <br />Business Center, the company is in default of its development agreement. The <br />president of the company was sent a notification that he had 30 days to cure the <br />default by providing evidence of his intent to complete the facility. He selected <br />not to cure the default. <br />OPTIONS: <br />1. Adopt Resolution 01-02, declaring default and terminating the development <br />agreement <br />2. Return to staff for further consideration <br />RECOMMENDATION: <br />Option 1 <br />