A Minnesota company is seeking $1.8 million over a deal to open up a sand mine in the town of Howard.
Northern Oak Proppants LLC of Minneapolis filed the lawsuit Aug. 10 against Northern Sands LLC of Winona, Minnesota.
Besides the $1,875,000, Northern Oak is seeking interest from Feb. 28, 2016, and to take over Northern Sands’ holdings for leases and purchase agreements in the town of Howard.
According to the lawsuit filed in Chippewa County Court:
Northern Oak and Northern Sands entered into a developer’s agreement on Aug. 19, 2014, over a proposed sand mine. Under the terms of the agreement, Northern Oak paid Northern Sands $1.5 million.
The agreement called for Northern Sands to secure a license-to-mine permit from the town of Howard on or before Aug. 31, 2015. Northern Sands failed to do that.
Northern Sands was required under the agreement to repay Northern Oak the $1.5 million plus interest, equaling the $1,875,000 before Feb. 27, 2016. “Defendant has failed and refused to timely pay the (amount) due,” the lawsuit said.
Northern Oak said under the developer’s agreement it is entitled to pick up two leases and two residential offers to purchase property in the area.
The company said as of June 2, 2017, that Northern Sands no longer holds any right, title or interest in the leases and purchase agreements.
Northern Sands has 20 days to respond to the lawsuit.