The mediation that had been scheduled to begin in early November between the building ownership group and the city of East Grand Forks has now been postponed and nobody is sure when it will be rescheduled. The dispute concerns an unpaid economic development loan and the announcement concerning the postponement came from a city official.

The building ownership group, Boardwalk Enterprises and city representatives were due to meet to discuss the $510,000 loan that was used for the construction of the Boardwalk building. City leaders are saying the bill has been unpaid for more than 10 years. The postponement occurred, according to a city official, because the attorney for Boardwalk Enterprises had an unavoidable conflict in his schedule. There is no new date set for the mediation session and the attorney is not taking calls from reporters.

The loan was originally agreed upon in 1999 and given from the city to Boardwalk Enterprises. It has been a controversial subject for going on 18 months, and finally reached the Minnesota Court of Appeals following a City Council vote in June. The meeting included a conditional renewal of the Boardwalk Bar and Grill’s liquor license based on whether or not the loan issue was resolved within the year.

Boardwalk Enterprises attorneys argue the city cannot impose conditions such as this, partially because the bar and ownership of the building are two separate groups. The city claims the ownership of the bar and the building are similar enough that it was an appropriate contingency.