SeaQuest, which seeks $1 million from Grand Forks, has had issues elsewhere

Jul. 30—Grand Forks city leaders are considering paying an Idaho company $1 million to turn a now-empty Kmart building into an aquarium — but the company itself is dogged by allegations of mistreatment of animals and mismanagement.

City Council members on Monday informally directed city staff to pursue a grant agreement with SeaQuest, a Boise-based chain of aquariums that hopes to turn a 17,000-square-foot piece of the Grand Cities Mall into the company's 10th aquarium in the United States. The council is set to consider formalizing that direction on Monday, Aug. 2. A definitive vote on the public subsidy has not yet been set.

The company boasts hands-on interactions with exotic birds and sea animals as well as millions of dollars of cascading economic benefits, but it's also got a history of run-ins with state and federal regulators and was sued after failing to pay some of its debtors as recently as last year.

Thus far, Grand Forks' due diligence for the public subsidy has consisted of meetings with developers for the project and a trio of representatives from the company, including CEO Vincenzo "Vince" Covino, and some searches for reviews and other information on the internet. Mayor Brandon Bochenski said city administrators had not taken an in-depth look at the company's past problems.

"I think we want to get further along the line," he told the Herald.

Covino, Bochenski said, is scheduled to appear at the upcoming City Council meeting.

"If it doesn't go any further on Monday night," Bochenski said, "then ... we won't have to worry about that."

Covino did not return a Herald request for comment on Thursday. But his company, which has opened aquariums across the country in vacant mall storefronts, could be something like a cure for modern retail woes. Rather than offering a storeful of products that are often available more readily and more cheaply online, SeaQuest offers an experience: hands-on meetings with otters and sloths, snorkeling with stingrays, and "fishy kisses" — fish nibbling dead skin cells on customers' feet. Covino told Grand Forks City Council members on Monday that SeaQuest is "Amazon-proofing" economies.

But critics contend that experience comes with a cost. Activists decry SeaQuest's documented history of injuries to customers and animals alike at the company's aquariums, plus broader contentions of law-breaking and shady business practices. The company's aquariums have repeatedly been cited by the U.S. Department of Agriculture's Animal and Plant Health Inspection Service, as well as a handful of state-level regulators, and SeaQuest has been the target of litigation from animal rights proponents and some of its creditors.