An attorney for the board of the defunct Metro Gang Strike Force says it is prepared to give at least $144,000 in seized and forfeited funds to the state Attorney General's Office, which says it wants $229,000.

The two sides will negotiate, and the board is expected to vote next month on a final proposal, said Kori Land, the Strike Force attorney.

The Minnesota legislative auditor found last May that the Strike Force broke state law when it failed to give the attorney general 20 percent of forfeited funds and proceeds from the sale of forfeited property.

Under law, a law enforcement agency can keep 70 percent of such funds and proceeds, but must give 20 percent to the prosecuting agency that handled the forfeitures and 10 percent to the state treasury. The attorney general handled Strike Force forfeitures. The force sent 10 percent to the state treasurer and kept the rest.

Retired Force Cmdr. Ron Ryan claimed that former Attorney General Mike Hatch released the force from the obligation in 2003, after the unit lost state funding. Ryan said he believed the arrangement was permanent. In an interview last month, Hatch said he agreed in 2003 that for one year, the force could keep the 20 percent, but he said Ryan didn't renew the request. Hatch said he'd have renewed it if asked.

The legislative auditor said that the deal was inappropriate and the force owed the attorney general $229,000. Ten months ago, the attorney general's office told the auditor it had no knowledge or record of a deal and expected payment.

Rebecca Spartz of the attorney general's office requested the $229,000 in a Dec. 18 letter. Land said an attorney general representative told her the office was not stuck on the $229,000 figure.

"The letter speaks for itself, and we wait for a formal response," said Ben Wogsland, a spokesman for the attorney general. Land said the auditor found that between late 2005 and 2009, the Strike Force properly seized and forfeited $724,264. She said she believes the attorney general is due at least 20 percent of that, or $144,852.

She said the attorney general's request for $229,000 included a claim on a share of the large amount of cash found in the force safe. Land said she did not know if that cash was properly seized.

Randy Furst • 612-673-7382