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Boardwalk served with loan default notice

The city of East Grand Forks has served a notice of default to a business that hasn’t paid back a $510,000 city loan for more than a decade.

Boardwalk Enterprises LLP received the notice Tuesday, said City Administrator David Murphy. He said that officially begins the loan collection legal process.

Murphy said Boardwalk representatives have 60 days to reply to the notice. He said the default notice had to be served soon because the statute of limitations on the mortgage is scheduled to expire in October.

Boardwalk received the city loan in 1999. Annual $30,000 payments were supposed to begin in 2003 but never came, according to city staff members.

The loan was used to help construct the Boardwalk building, which now is home to restaurants, in the wake of the 1997 Red River flood.

Dan Stauss, a brother of East Grand Forks Mayor Lynn Stauss, has been listed as a partner in Boardwalk. The mayor, however, has said he didn’t know about the loan and is not involved with Boardwalk.

Mayor Stauss recused himself from a closed-door meeting about the city’s legal strategy to recover the loan in late June.

Jim Richter, the former Economic Development and Housing Authority executive director who signed the loan agreement, retired in mid-May, a few weeks after the existence of the outstanding loan was publicly revealed.

The city has hired Fargo-based attorney Brad Sinclair to help with its loan collection efforts. A letter provided by Murphy indicates that Boardwalk is represented by Jon Brakke of the Vogel Law Firm in Fargo. 

Call Hageman at (701) 780-1244, (800) 477-6572 ext. 1244 or send email to

John Hageman

John Hageman covers North Dakota politics from the Forum News Service bureau in Bismarck. He attended the University of Minnesota in the Twin Cities, where he studied journalism and political science, and he previously worked at the Grand Forks Herald and Bemidji Pioneer.  

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