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First two Flood Recovery Loan Program applications approved
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By Charlie Warner
Argus News Editor
Nearly seven months after the August 2007 floods ravaged Southeast Minnesota, the first two Business Flood Recovery Loan agreements were approved on March 11. The Houston County Board approved a loan in the amount of $130,727 for Twin Creeks Golf and a loan in the amount of $10,400 for 7 Rivers Surplus. Both businesses are located in Hokah.
County EDA Director Joyce Iverson brought the two applications to the county board for approval, and noted there are several others that are also nearing completion.
The Flood Recovery Loan Program is part of a grant agreement created by the state of Minnesota for up to $5 million in economic aid to businesses affected by the August 2007 floods. It includes $4,903,000 for business loans in Houston County, and $97,000 to administer the program. The program will be administered through the Southeast Minnesota Development Corporation and the Houston County EDA.
Assistance is primarily for flood damages, although an assistance category has been made available to non-flood damaged businesses to increase the overall economic activity in Houston County.
Flood damaged businesses can utilize MIF recovery funds for not only “flood damages” but also to assist with construction, even if at a new location, with special provisions for leveraging other funds.
The program is geared to helping reopen and re-establish businesses to retain and create jobs.
A direct loan may cover up to 100 percent of documented flood losses, not to exceed $500,000. Seventy-five percent of the loan shall be forgivable at the end of 10 years of continuous operation of the business with 50 percent of the forgivable amount (up to a maximum of $100,000) forgiven at the end of five years, and the balance declining 20 percent per year and totally forgiven after 10 years. The other 25 percent of the loan is repayable as a low interest loan with the first payment deferred for three years.
Iverson explained that the money for the loans will be paid out as receipts from the approved applicants come in. A committee will review the receipts before approval is granted for the reimbursements.
Iverson added that she currently has potential applications that could total approximately $1.2 million in additional loans, and will be working closely with those businesses.
Because Houston County is serving as the fiscal agent in this program, it will be receiving approximately $300,000 that will go into the county’s EDA revolving fund. The revolving fund can be used for any type of business loan administered through the county EDA.
When the county board first reviewed the proposal program with Iverson in November, there was some concern that the county might be liable for the 25 percent repayable portion of the loan. Iverson assured the county board in early January the necessary funds had been approved by the state and “the county would not be on the hook for the other 25 percent.”
In other board action:
Water patrol update
County Sheriff Doug Ely brought the board up to speed on the upcoming summer water patrol program. Houston County has 25 lineal miles of river front along the Mississippi River that is part of the Sheriff’s Office jurisdiction.
With nearly $12,000 in state and federal grants to be used for water patrol, Ely plans to schedule 560 hours “on the water,” which would be nearly every day, during the summer boating season.
“We plan to have one water patrol officer and most of the time, a ride-along to assist the officer while on water patrol,” Ely explained. “The patrol officer might not always be one of my deputies. We have a number of officers from other jurisdictions throughout the county who will be helping with the water patrol. They have all received the necessary training. As long as we have the new patrol boat, have received funds from the state and feds to pay for the hours, we feel we should be out on the water as much as possible this summer,” Ely concluded.
CUP approved
The county board approved conditional use permits (CUP) for two separate property owners who wanted to move more than 10 yards of fill in a floodplain/shoreland area. In both cases, the proposed work was to repair ground damaged by the August 2007 flash floods.
Craig Colbenson, of Yuctan Township wanted to replace a 150 by 60 foot piece of river bank that had been eroded during the floods.
The second request was from La Verne Oesterla, of Mound Prairie Township, who had three large holes grubbed out of his property when the Root River went over its banks. The holes were about 20 by 30 feet and about six feet deep.
According to County Zoning Administrator Bob Scanlan, the DNR had been contacted concerning the projects, and didn’t have any problems with them. The plans had also been reviewed by the County Planning and Zoning Board, which recommended the approval of both applications.
You can contact Charlie Warner at
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