Firebird Land LLC and BDM have responded to an eviction lawsuit filed by the city of East Bethel by denying the city’s allegations and filing a countersuit alleging they did not breach their contract and were overcharged for road retrofit and sewer connection fees. The countersuit was filed Dec. 17.
In a response filed Dec. 19, Firebird and BDM answered the city’s eviction action, denying “each and every” allegation and demanding the city meet its strict burden of proof. The companies acknowledged they continue to occupy the Whispering Aspen community center but argued the city lacks legal or statutory authority under Minnesota law to pursue the eviction.
In the filing with Minnesota District Court’s Tenth Judicial District, Firebird and BDM seek dismissal of the eviction case and request monetary damages as appropriate.
Firebird Land LLC separately filed suit against East Bethel on Dec. 17, outlining the contractual dispute underlying the eviction case.
According to the complaint, Firebird purchased a failed 75-acre plat from the city under a 2004 agreement to develop a single-family housing project known as Whispering Aspen. The building housing the development’s water system was designated in the agreement to become a community center and tornado shelter for residents.
Firebird alleges that despite the terms of the purchase agreement, some members of the East Bethel City Council later raised objections to the community center project. The complaint specifically names Council Members Tim Miller and Jim Smith, alleging Miller raised concerns about misuse of taxpayer funds and that both council members linked Council Member Brian Mundle Jr. to Firebird. Mundle Jr. is also the construction manager for BDM, which is owned by his father.
The complaint further alleges the city was to collect $2,000 per building permit during the project’s first phase and place the funds in an interest-bearing account, with any excess returned to Firebird. The agreement also allowed the city engineer to request additional deposits if necessary, with those payments offset against future permits.
Firebird alleges it paid a $25,000 deposit at the city’s request and deposited the full $1.7 million purchase price into an interest-bearing account for street retrofitting. The complaint claims the city failed to account for accrued interest and has not returned any of the deposited funds.
Firebird also alleges East Bethel overcharged for sewer connections on 17 lots, charging $6,535 per lot as of 2020 rather than the $6,000 per lot specified in the 2004 agreement, resulting in an alleged overcharge of $9,095.
In its countersuit, Firebird seeks declaratory judgments affirming its right to use the office space, to collect road retrofit fees, and alleging a breach of contract related to sewer connections.
According to the civil cover sheet filed with the countersuit, Firebird has requested a jury trial, with a proposed trial start date of Dec. 2, 2026.