November 5, 2009

Council approves sponsorship of CDBG

Council approves sponsorship of CDBG

By ALLAN TINKER
With Mayor Theresa Jorgenson absent, Acting Council Chair Mark Miller led the group for the Monday, Nov. 2 meeting. Their first item of business was the public hearing on the proposed Community Development Block Grant through Lewis and Clark Rural Development, with Brent Ekstrom as that agency’s representative.
Rev. George Schuessler, Ladora Schuessler, Mary Neff, Clinton Neff, Darvin Engel all appeared and supported the grant application for Scott and Diane Holen’s purchase of the former Reule’s Super Valu store. A motion passed for the sponsorship of the grant.
The money will “pass through” the city, with no liability for that amount in case of default, said Ekstrom. It is similar to the grant for Polar Ware, excepting the interest amount. The grant for Holen’s is at 5 percent; Polar Ware’s is at zero percent, according to Ekstrom. He also noted that the Holen’s investment will be close to $200,000 for the property plus new equipment when everything is done.
Upon question as to the time the store will be open and if this loan is holding things up, Ekstrom said no, the holdup is not the loan process. He stated that ordering the needed equipment after the loan is final will be key as to when the store can reopen. The store back door also has to be widened to accommodate the large coolers and freezers, he added. New three-phase electric service will also have to be installed.
Mary Neff stated, “It is great that a young couple came forward to do this.” Rev. Schuessler added, “We must assist people to get started.”
Of the 5 percent interest, when the principal is paid the city will receive 2½ percent; with the remaining 2½ percent going to LWRD for their part in the bookkeeping, paperwork and administration of the grant/loan process.
Other items considered:
*Approved a raffle permit for Sheridan County Dollars for Scholars;
* approved a building permit for Theresa Jorgenson to put up a small metal shed on a wood floor;
*signed a Community Military Covenant;
 


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