Cirrus Design has paid six months worth of back rent that it owes the city of Grand Forks, according to the city.
The Duluth-based aircraft manufacturer fell behind on rent both at its main plant in Duluth and its smaller plant in Grand Forks as sales tanked during the recent recession. It recently came to an agreement in Duluth to convert $187,500 in back rent to a loan that will be forgiven if it substantially increases operations in Duluth.
Members of Grand Forks' Growth Fund learned today that the company has paid $507,000 in back rent to the city. Another 11 months' back rent is due, worth $930,000. Growth Fund members plan to meet with Cirrus management July 27 to discuss the company's plans to become current.
Cirrus told the Grand Forks City Council in December that it had been hit hard by the recession, but it promised to repay the back rent. City documents indicate Cirrus normally pays $941,000 annually or $78,000 a month. On a monthly basis, the payment of back rent works out to $85,000 a month.
