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Council approves $100,000 IRP loan with standard safeguards to keep business in Crookston
Summary
The council approved a $100,000 intermediate relending (IRP) loan for a business planning a facility in Crookston, including an acceleration clause and equipment liens to discourage relocation and protect the city.
Council approved an IRP (intermediary relending program) loan of $100,000 to support a business’s plan to construct or acquire a facility in or serving Crookston.
City staff explained the loan committee recommended approval after receiving the required documentation. The loan agreement includes a standard acceleration clause requiring immediate repayment if the recipient substantially moves operations outside the city and a lien on equipment (staff said the city may secure a first lien in this circumstance). Council members discussed the applicant’s prior attempts to locate in Crookston and emphasized due diligence to retain the project locally. Council approved the loan on roll call.
Staff said the loan’s conditions (repayment acceleration, equipment lien) help protect the public interest if the business relocates.
