Kelsie's Food and Dairy is backing out of a deal in Wayne County, according to the Richmond Palladium-Item:

Kelsie’s Food and Dairy is apparently not coming to Wayne County with its promised $18 million processing plant, its 200 jobs and its $3.54 million annual payroll.

The Economic Development Corporation of Wayne County announced Monday that the Minnesota-based company had not fulfilled terms of its contract with the EDC and therefore would forfeit a $10,000 deposit on 26 acres of land held locally for the company.

“In essence the contract is self-terminated,” said EDC board president John Zetzl. “The contract with them became null and void.”

Zetzl said the EDC’s development agreement with Kelsie’s promised money for employee training and other incentives as long as Kelsie’s performed certain obligations within 540 days.

Time ran out in mid-May and Zetzl said he sent Kelsie’s owner Ray Whitmore a letter asking if the company still planned to meet its obligation.Local officials never received a response.

“We gave them a 10-day response period, but there was no response,” Zetzl said. “At this point, the file is closed on that project.”