HomeMy WebLinkAboutIV.A. HEDRA Resolution No. 2022-13 - Approving Revolving Loans to Spiral Foods Co-opCITY OF HASTINGS
DAKOTA COUNTY, MINNESOTA
HEDRA RESOLUTION NO. 2022-13
A RESOLUTION OF THE HASTINGS ECONOMIC DEVELOPMENT AND
REDEVELOPMENT AUTHORITY (HEDRA) APPROVING REVOLVING LOAN TO SPIRAL FOODS COOP
WHEREAS, the Hastings Economic Development and Redevelopment Authority (HEDRA0 has
established an Economic Development Revolving Loan Fund and Guidelines pursuant to Minnesota State
Statutes 469.01 on April 13, 2017; and
WHEREAS, Spiral Foods Coop is a tenant in property located at 1250 South Frontage Road which
is identified as PID 19-83010-01-010; and
WHEREAS, Spiral Foods Coop has applied for revolving loan financing to partially finance various
tenant improvements and working capital to allow expansion of the grocery business; and
WHEREAS, the total project cost for the proposed business expansion is $634,811; and
WHEREAS, Spiral Foods Coop has provided greater than 15% cash equity and has consulted with
the Open To Business program provided by the Metropolitan Consortium of Community Developers
(MCCD) which based on the established HEDRA loan guidelines qualifies them for a reduction in their
fixed interest rate from 4.0% to 3.5%; and
WHEREAS, HEDRA finds that the loan is not a business subsidy under Minnesota State Statues
116J.993; and
WHEREAS, HEDRA finds that the work and costs meet the Economic Development Revolving
Loan Fund program guidelines; and
WHEREAS, Staff has outlined a working capital loan of $25,000.00 which would have terms of 1
year payment and interest free and then a term of 3 years at a fixed interest rate of 3.5%; and
WHEREAS, Staff has outlined an additional machinery and equipment loan of $25,000 which
would have terms of 1 year payment and interest free and then a term of 10 years at a fixed interest
rate of 3.5%; and
NOW THEREFORE BE IT RESOLVED, that HEDRA authorizes signature of loan agreements as
outlined above contingent upon the following:
1) The loan from Vermillion Bank in the amount of $180,000.00 is in place.
2) The Economic Injury Disaster Loan (EIDL) loan of $199,700.00 is in place.
3) The loan from the Metropolitan Consortium of Community Developers (MCCD) in the
amount of $50,000.00 is in place.
ADOPTED BY THE HASTINGS ECONOMIC DEVELOPMENT AND REDEVELOPMENT AUTHORITY
THIS 14th DAY OF APRIL, 2022.
AYES:
NAYS:
ABSENT:
Bruce Goblirsch, President
Eric Maass, Secretary
This instrument drafted by:
City of Hastings
101 East 4th Street
Hastings, MN 55033