EDA discusses possible collection of revolving loan fund debt
Tuesday, November 20, 2012 3:41 AM
The Spring Valley EDA, meeting Wednesday, Nov. 14, discussed what to do next to possibly collect on a revolving loan fund account.
The EDA has discussed its options at previous meetings for collecting the balance due on the Jerry and Michelle Carr revolving fund loan for HomeStyle Pizza, which is currently in foreclosure. A sheriff's sale of the building will likely take place within two months.
At the October meeting, the EDA agreed that economic development director Cathy Enerson should request a lump sum, the full amount due, from the Carrs to pay it off.
At Wednesday's meeting, Enerson said the Carrs have not responded. She said the next step, as suggested by the city attorney, would be "going after a promissory note."
EDA member Steve Himle said he feels the board doesn't have "much of a choice."
"We have tried and now we have to go to the next level," he added.
The board discussed the 2013 contract with CEDA (Community and Economic Development Associates), which provides the EDA with its director. The board discussed a few items on the contract. Enerson noted the only change from 2012 was a slight increase in cost. There was a question about one item in the language, so the contract will be brought up again at the next meeting for approval.
Enerson announced that Minnesota Joe's in Spring Valley recently received its certificate of recognition from the EDA for its new business in Spring Valley.
The director said she still needs a certificate of occupancy from Corey Marzolf in order to present him with his check for the USDA funds he was awarded through the EDA.
The requested tools available to assist with downtown revitalization were discussed and listed as the following: $539,750 through CEDA's Small Cities Development Program grant (if awarded) and $214,230 from other sources for a total of $753,980. The other sources include Greater Minnesota Housing Fund (GMHF), Spring Valley Public Utilities, Spring Valley Area Community Foundation, the EDA and the applicant.