Committee Minutes

Minutes of Grand Forks City Council/Growth Fund
Authority (JDA) - Monday, November 8, 2010 - 7:30 p.m.____

The city council of the city of Grand Forks sitting as the Growth Fund Authority met in the council chambers in City Hall on Monday, November 8, 2010 at the hour of 7:30 p.m. with Chairman Gershman presiding. Present at roll call were Council Members Bjerke, Grandstrand, Glassheim, Gershman, Christensen, Sande, Kreun - 7; absent: Mayor Brown.

MATTER OF PENDING LITIGATION

The city council may convene in executive session pursuant to North Dakota Century Code Sections 44-04-19.1 and 44-04-19.2 for attorney consultation.

Howard Swanson, city attorney, reported that the item before the JDA is the matter of pending litigation, specifically a lawsuit that the Grand Forks Growth Fund has brought against Heyer Engineering, Peterson Construction and Flatcrete, Inc. Last Wednesday they had a full day of mediation and as a result of that meeting session they have reached a tentative agreement with all of the defendants, the terms of that proposed agreement are that the defendants will under a warranty repair the cracks to the floors, approx. 10,000 l.f. of cracked floor, and in addition the Growth Fund would be reimbursed approx. $22,525.00 for out of pocket expenses. It was within the realm of negotiation strategy that they had discussed last week and entered into a tentative mediation settlement agreement pending action by the JDA. He stated he believes overall the settlement is within the terms that they were hoping for and recommended approval, but if want to go into executive session, can but doesn't see any reason - the options are either to accept the settlement as proposed or litigation trial December 6. The recommendation is subject to the city attorney's final approval of concluding documents.

Council Member Christensen moved to accept Mr. Swanson's recommendation, seconded by Council Member Grandstrand. Upon call for the question and upon voice vote, the motion carried 7 votes affirmative.

Respectfully submitted,



` Saroj Jerath
City Auditor