East Bethel council sets Aug. 19 deadline for BDM lease or eviction after contract dispute

East Bethel — The East Bethel City Council on Aug. 11 adopted an amendment setting an Aug. 19, 2025 deadline for BDM/Firebird Land LLC to sign a revised lease agreement or the city will begin eviction proceedings, after a heated discussion about last-minute proposed changes to a draft agreement.

Council members said they believed a verbal agreement had been reached in earlier negotiations and objected to receiving a message from the developer indicating additional changes the same day as the council meeting. “So now all of a sudden, now there's going to be more changes. In my opinion, what I see with this whole thing is that we're being played,” a council member said. That same member moved to evict BDM; another council member seconded the motion and supported adding a deadline tied to the letter of intent's termination period.

City staff recounted negotiations and described the contract terms under discussion. Staff said the draft agreement would have BDM pay $300 monthly for its share of electricity, Internet, water, sewer and common-area maintenance and would address placement of a business sign. Staff also described how the original contract language from 2004 referenced SAC (sewer availability charge) and WACC fees, and that the regional Met Council now administers some sewer hookup charges — meaning amounts the city passes through can differ from the historical $6,000 SAC/$500 WACC figures cited in the draft. “This contract never took that into account,” a city staff member said.

The council debated timing and legal options after staff said a letter of intent (LOI) contained a 20-day response window. Council members and staff discussed when the LOI was emailed and how the 20-day period should be calculated; council members ultimately amended the motion to give the developer until Aug. 19, 2025 to sign or face eviction. The council adopted the amendment; the motion passed with one council member recorded as opposing and one abstention.

City attorney Softley told the council negotiations remain part of an active process and that staff will review any proposed revisions with the city's attorney. “In any negotiation, at some point, the negotiating stops,” Softley said, noting the city is operating under an operative agreement while seeking revisions. Staff warned that reissuing agreements or responding to proposed changes could generate additional legal costs.

Council members said they sought finality after a dispute that council members characterized as a long-running issue; one council member said the situation had cost residents “hundreds of thousands of dollars” over time, a claim the council did not quantify in the meeting. The amended motion obligates staff and the city attorney to pursue eviction procedures if a signed agreement is not returned by Aug. 19, 2025, or to consider additional legal steps if the developer attempts further revisions.