Minot council authorizes outside counsel to untangle Big M TIF legal issues

The Minot City Council on Feb. 17 unanimously authorized hiring outside counsel to help resolve legal and financial encumbrances related to the "Big M" tax increment financing (TIF) project, city officials said.

City staff and the finance director described a complex set of encumbrances that could include mortgages, construction liens, investor personal guarantees, outstanding taxes and an existing TIF and minimum assessment agreement. Staff said successor developers or purchasers will want those items addressed before investing, and the city has made bond representations to bondholders that could trigger required disclosures.

The recommended outside counsel is the same firm that previously worked on Cyprus matters; council members said the firm (a large practice) would provide extra legal resources and phone-time capacity to move the matter more quickly. Council discussion emphasized the city's interest in finding a successor developer to complete the project, recoup investment, and return the property to tax rolls, rather than leaving a derelict building that could be demolished and become a taxpayer expense.

Aldermen pressed staff on possible outcomes: whether obligations could be wiped clean, assumed by a purchaser, or otherwise negotiated depending on the identity and structure of successor investors (for example, an LLC with limited assets might leave little for the city to collect). Staff cautioned there are many variables to consider and outside counsel was recommended to evaluate legal options and negotiation paths.

The council approved the recommendation to retain counsel and asked staff to proceed; no vote tally beyond unanimous passage was provided during the meeting.