The Koochiching Economic Development Authority Board Wednesday continued discussions regarding delays in constructing a second cold box for cold weather testing purposes in International Falls.

KEDA Director Paul Nevanen explained the delay is getting an undisclosed client to sign an agreement that would allow for construction of the cold box and other improvements at the facility this season.

Nevanen said he met with the Koochiching Development Authority Board Tuesday and the International Falls City Council Monday seeking financial support for the project from the two bodies. Neither group took formal action on contributing to the potential project.

The interested customer — a European automotive company — not yet named publicly, has agreed to a 10-year contract. The deal would involve expending about $644,000 by the local governments, which would be repaid by the client in five years with a 2-percent interest rate.

At issue, however, is that the contract must be signed by all parties by June 1 to allow the cold box to be constructed this season and allow the client to begin testing, as they desire, Nov. 15, said Nevanen.

“Timing is critical,” he explained.

County officials Tuesday said they would have to reopen the 2012 county budget to make adjustments in order to come up with its share of the money. And that, they said, would take time.

In addition to a public bidding process and construction of the potential facility, Nevanen said the compressor for the cold box takes eight weeks to construct and the drop-dead time is approaching.

Steve Shermoen, KEDA attorney, said a Nov. 15 deadline could be reached if plans continue accordingly.

“If there aren’t any glitches (in the final agreement), (the timeline) should be doable,” he said.

Shermoen added that the potential customer was seeking detailed drawings of the potential facility and questioned if the KEDA board wanted to move forward without signatures on a final agreement.

“These detailed drawings are going to be a significant numbers I would guess,” Shermoen noted.

Nevanen said he told the KDA Board that he had not discussed using city money to front the project costs, but Commissioner Rob Ecklund Tuesday said he would discuss the idea as the agreement continues to be developed. City councilors said Monday that they wanted to be kept abreast of the project.

No formal action was taken by the KEDA board, but the group urged Nevanen and Shermoen to continue working on establishing a final agreement.

In other business Wednesday, the board agreed to give the personnel committee authority to hire an administrative assistant.

The now part-time position was vacated last month and a group of board members interviewed four applicants April 30. However, Nevanen Wednesday told the board both the top and alternate candidates for the position declined the job offer.

“So, we are still in the process of finding someone,” he said.

The board felt that allowing the personnel committee to make the hire was the best option to expedite the process.