The Crookston Housing and Economic Development Authority (CHEDA) Board will have a special meeting Tuesday, February 11, at 7:00 a.m. at Valley Technology Park. The agenda is a closed session to evaluate Executive Director Craig Hoiseth.
Removed from a previous version of the agenda was an item titled Crookston Inn. The UCC (Uniformed Commercial Code financing statement/lien) was discussed at the regular CHEDA board meeting on January 28 with board president Kurt Heldstab stating a special meeting would be held to move on the UCC within a week or two.
CHEDA Executive Director Craig Hoiseth addressed why the discussion was removed from the special meeting agenda. “Two weeks ago, at the regular board meeting, the board chose not to bring to the agenda the release of the UCC security for the Crookston Inn,” said Hoiseth. “And decided to do some review and research for the next two weeks to see what was the law, what was the state statute, and what was the requirement regarding the removal of that UCC. Since then, we’ve been doing some work and looking into it. And we found that removal of that UCC does not in any way prohibit the Crookston Inn from reopening. So, in meeting with the CHEDA Board president on Friday, Kurt said – what have you found out. I said – well, removing the UCC does not prohibit the Crookston Inn from opening or give them any extra liability toward it – so, what we’re going to is we’re just going to wait and hold our UCC filing on the Crookston Inn. And they’ll open as scheduled here, later this month.”
Hoiseth added that part of the decision not to continue a discussion on releasing the UCC was a legal opinion obtained by CHEDA stated a release was not required. “What we did is evaluated what the state statute was,” said Hoiseth. “And then, we incorporated consultation with legal representation. Our legal opinion has come back to us now that says it’s not required to release that UCC.”
Hoiseth also gave a couple of examples of reasons the board may consider the release of the UCC at a future date. “Certainly, down the road, I think United Valley Bank, the primary lender, might wish for us to remove the UCC which we’d consider at that time,” said Hoiseth. “I’m not sure if that removal would be necessary upon a transfer of ownership or something like that. Certainly, if there is anything that would prohibit the Crookston Inn from continuing business, we’d take a look at removing that UCC at that time.”
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