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EGF City Official who signed unpaid loan on Administrative leave

The city official who signed the $510,000 loan between Boardwalk Enterprises and the city of East Grand Forks has been placed on paid administrative leave. Payments on the loan were supposed to start in 2003, but city officials say they haven't received any of the money.

At Tuesday's East Grand Forks City Council meeting, Jim Richter was placed on paid administrative leave. Richter is the director of the Economic Development and Housing Authority, and he signed the original loan agreement.

The loan was not on the agenda at Tuesday's city council meeting. The city loaned the $510,000 to Boardwalk enterprises in 1999. Annual $30,000 payments were supposed to start in 2003 and finish in 2019. City officials say those payments never came.

The loan was given to help construct the building that houses Boardwalk Bar and Grill and the Drunken Noodle. City Administrator David Murphy would not share why Richter was placed on administrative leave.

David Murphy, East Grand Forks City Administrator said, "All that I can report at this time is that our EDHA director Jim Richter is currently on paid administrative leave pending the outcome of a meeting sometime in the future, in the near future."

Murphy says he believes that meeting should be held within the next week. Mayor Lynn Stauss was not at Tuesday's city council meeting. He is at Stanford Bemidji Medical Center and officials say his status is good. Mayor Lynn Stauss is the brother to Dan Stauss, who is associated with the boardwalk property. City officials will have a closed meeting with Boardwalk owners Wednesday.