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Delta planning to dump Northwest’s Eagan HQ, House committee told

A state House committee heard today that Delta plans to close the old Northwest corporate headquarters in Eagan and relocate in Atlanta.
The House Information Service reports that Richard B.

A state House committee heard today that Delta plans to close the old Northwest corporate headquarters in Eagan and relocate in Atlanta.

The House Information Service reports that Richard B. Hirst, Delta’s general counsel, told the House Local Government and Metropolitan Affairs Committee that the company is moving ahead with the plan.

Committee Chairwoman Rep. Debra Hilstrom, DFL-Brooklyn Center, argued that the move would violate a 1992 covenant that required Northwest to keep its offices in the Twin Cities in exchange for $270 million in general obligation bonds issued by the Metropolitan Airports Commission. With roughly $245 million of that debt still outstanding, a violation of the covenant would mean that the state could force the Delta to repay the bonds at an accelerated rate.

“The covenants that are currently in place are a contract, and you can’t modify a contract by saying, ‘No, we’re not going to do it,’ ” Hilstrom said.

Hirst, however, said that early repayment of the debt is a price Delta would be willing to pay.

More here.