The bank that held a letter of credit for the failed Fufeng project in Grand Forks has paid for city expenses incurred during the exploratory period.
City Attorney Dan Gaustad informed the council last night (Monday) that the bank deposited over $2.5 million dollars ($2,528,134.29) in the city’s account late last week – the full amount requested.
The council scrapped plans to bring the corn milling project to Grand Forks after the U.S. Air Force expressed security concerns with locating the China-based company in close proximity to the GFAFB.
Council Vice-President Bret Weber says the development agreement with the company protected the city. “The development agreement provided a way for the city to explore the largest evert economic development project while protecting the city’s interest.”
The council also reiterated the fact that the city is not negotiating with Fufeng to purchase the 300 acres of land the company owns in north Grand Forks.
As KNOX News reported last week the North Dakota Supreme Court has dismissed an appeal by opponents over the rejection of petitions seeking a vote on the project. The court ruled the appeal “moot” since the project is not moving forward.
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