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Kelliher Council holds special meeting

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Bemidji, 56619
Bemidji Pioneer
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Bemidji Minnesota P.O. Box 455 56619

The Kelliher City Council met in special session Jan. 26 and reviewed the current Business Incentive Grant application.

One of the items up for discussion was repayment enforcement. The council pondered on whether they should require more collateral on entities that do not have any real estate for a lien. The city currently requires a personal guarantee. the council discussed options and decided to leave it as is.

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Also discussed was who is eligible. Were non-profit entitieseligible or not? The Council decision was to leave as is with non-profits being eligible.

Discussion was held regarding requiring a business to stay open and regarding contract for deed sales/purchases. Councilmembers concluded making a change to item #5 under Applicant Requirements to read as "if the applicant closes and/or sells " would take care of the issues.

They also decided to add item #4 under Goals, to read as "Increased Jobs: Increasing the available jobs in our community will eventually result in increased commerce, tax base and utility revenues."

Members decided to remove the "Civic Duty Commitment" requirement as it is very difficult to monitor and enforce. They felt it was necessary to wait to approve the final version at the next meeting.

They reviewed the Housing Incentive Grant application abddiscussed contract for deed properties.

The council decided to add the requirement of the registered land owner sign a statement authorizing the lien.

Also up for discussion is a time frame in which the applicant must apply for the grant.

Members decided to make the first item under Applicant Requirements to be; Applicant must apply for the Grant before the purchase/closing of the property.

Also discussed was a time frame in which the approved Grantee must close on the property being purchased.

Councilmembers felt they needed to set a time frame of 90 days, with an additional 90 days extension granted at the applicants request or the grant approval will be withdrawn and agreed to wait to approve the final version at the next meeting.

They reviewed the changes made to the revolving Lloan application from the last meeting.

City Clerk Shelli Krueth will need to verify with USDA the terminology of a Small Business. A discussion was held about changing the geographical area to be eligible. Other items discussed were existing financing, minimum loan amount, percent of project to be funded, collateral, interest rate, application fees and approval process.

The council suggested creating a committee of Richard Skoe, Darrin Latterell and Krueth to interview with the two possible third parties to do the paperwork processing of the loan applications and discuss the committee structure needed in order to prevent private data from becoming public.

This committee was then approved and were directed to speak with the Tiffany from HRDC to finalize the application and reporting processes.

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Pioneer staff reports
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