July 20, 2024
Loans

CITY OF CROOKSTON REVIEWS IRP LOAN APPLICATIONS


The Crookston Development Policy and Review Committee met on Thursday in the City Hall council chambers to discuss and review applications regarding the Intermediary Relending Program (IRP) and the loan guidelines.

“Over the years, the city has loaned money out to various businesses,” said City Administrator Corky Reynolds, “That money has come back, and the purpose is to assist in retaining or creating jobs for businesses in Crookston.”

The eligibility requirements for applicants and criteria included that the businesses must be local and independently owned. In contrast, the company must look to create or maintain jobs within the City of Crookston. The loan amount is $50,000 per job created or retained with a maximum of the lessor of $250,000 or 25% of the project’s cost. The city will set the interest rate, which varies per loan.

The Committee discussed and reviewed two loan applications. The first application that was reviewed was for Scooters Coffee and Breakfast Shop. Scooters have locations in Grand Forks and Thief River Falls and are looking to open a shop in Crookston. The Committee ultimately recommended the application from Scooters Coffee and Breakfast Shop.

“The committee made the recommendation to the (Crookston City) council to approve that loan request,” said Reynolds, “The process is the applications come in, the loan committee reviews them, and then the loan committee makes a recommendation to the city council for approval, denial, or make no recommendation and forward to the council to request.” Scooters applied for a maximum of $250,000, which will be recommended to the city council during their next meeting on January 22.

The second application reviewed was regarding the Fournet building, which Jeff Evers owns, in downtown Crookston. After a review of the application, the Committee recommended denial of the application. The denial will be recommended to the Crookston City Council during their next meeting. “The application was not complete,” said Reynolds, “There were other considerations that we look at in terms of cash flow and business plans, and when those factors were considered, the Committee felt that the application was not appropriate for recommendation.”

The application recommendations are pending approval and denial from the city council. The following steps in the process include clarifying the loan terms and preparing the documents necessary to solidify the distribution of the proceeds.

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