The City of Grand Forks has issued a notice of termination of its standstill agreement with Fufeng USA regarding a proposed corn milling project in north Grand Forks.
The project was terminated earlier this year after Air Force officials said it posed a significant threat for security reasons.
The city entered into a standstill agreement with Fufeng last month, and under its terms, the city says the standstill agreement has been terminated and no longer effective.
In a letter to the city council, Grand Forks city administrator Todd Feland said: “The city of Grand Forks has received a letter of credit/notice of non-extension from (New York-based) MUFG Bank yesterday (Wed) related to Fufeng USA. As a result of the non-extension, the standstill agreement terminated. In turn, a notice of termination of the development agreement was delivered to Fufeng USA and its attorney. Also, the city of Grand Forks delivered its demand on the ($5 million) letter of credit, which still remains in effect until June 24, 2023.”
Feland said the city’s demand was $2.528 million, covering the city’s expenses related to due diligence of the mill.
Feland said MUFG Bank has seven business days to respond to the demand.
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