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HEDRA MEMORANDUM
To: HEDRA Commissioners
From: Rusty Fifield, Economic Development Coordinator
Date: February 5, 2020
Item: Revised Loan Amount –214 2nd Street East
Action Requested
Adopt the attached resolution authorizing staff to proceed with a revised Economic
Development Revolving Loan for Marathon Properties LLC in the amount of $8,256 for electric
system improvements to 214 2nd Street East.
Background
This is the 3rd and final time
this matter will appear on the
agenda. At the November
meeting, HEDRA approved
Economic Development
Revolving Loans to make
electrical system
improvements related to
apartments in buildings at
214 2nd St. E. ($6,337) and
216 2nd St. E. ($7,632). An increase in the loan for 216 due to additional improvements was
approved at the January meeting. The final invoice (copy attached) identified additional work
performed for 214. The applicant has requested an increase in the loan due to these costs. The
table on the right explains the adjusted project cost and loan amount.
Loan Terms
Loan terms remain the same:
Ten-year term
0% interest the first year, and 0.25% above the Prime Rate (5.00% at time of initial
approval) for years 2-10. The loan would be recalibrated to reflect changes in the Prime Rate
every two years.
Loan proceeds would be disbursed upon proof of qualified expenses.
The loan would be secured with a mortgage and personal guaranty.
Recommendation
Approval of the loans as presented is recommended. ACTION – Adopt Resolution 2020-05 –
Approving a revised Economic Development Revolving Loan to Marathon Properties LLC for
Improvements to 214 2nd Street East in the amount of $8,256.
216 2nd Street E 214 2nd Street E
Original estimate 15,265$ 12,675$
Original loan 7,632$ 6,337$
Change order #1 4,040$
Revised loan 9,652$
Final invoice 19,327$ 16,512$
Adjusted loan NA 8,256$
HASTINGS ECONOMIC DEVELOPMENT
AND REDEVELOPMENT AUTHORITY
RESOLUTION NO. 2020-05
APPROVAL OF A REVISED ECONOMIC DEVELOPMENT REVOLVING LOAN TO
MARATHON PROPERTIES LLC FOR IMPROVEMENTS TO 214 2ND STREET EAST
Commissioner __________ introduced the following resolution and moved its
adoption:
WHEREAS, the Hastings Economic Development and Redevelopment Authority
(HEDRA) has established an Economic Development Revolving Loan Fund and Guidelines
pursuant to Minnesota State Statutes 469.01 on April 13, 2017; and
WHEREAS, HEDRA has approved a loan to Marathon Properties LLC in the amount of
$7,632 to partially finance electrical system improvements in the building located at 214 2nd
Street East; and
WHEREAS, additional costs estimated to be $3,837 for items qualified under the
Program Guidelines have been identified; and
WHEREAS, HEDRA finds that the loan is not a business subsidy under Minnesota State
Statutes 116J.993; and
WHEREAS, HEDRA finds that the work and costs meet the Economic Development
Revolving Loan Fund Program Guidelines.
NOW THEREFORE BE IT RESOLVED that (1) HEDRA approves a revised loan in
the amount of $8,256 subject to the previously approved terms and conditions, and (2) The
Executive Director is authorized to sign and execute documents related to this loan.
Commissioner ______ seconded the resolution and upon being put to a vote it was
adopted:
Ayes: Absent:
Nays: Abstention:
The resolution was duly adopted this 13th day of February, 2020.
________________________
Martha Sullivan, President
ATTEST:
______________________________
Rusty Fifield, Secretary