Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Economic Development topic
No spam. Unsubscribe anytime.
St. Peter council approves five‑year extension for Food Co‑op loan; interest rate raised to 5.25%
Summary
The council approved a five‑year balloon payment extension for the St. Peter Food Co‑op revolving loan; staff said the secured loan’s interest rate was adjusted to 5.25% under city policy. One council member abstained from the vote.
St. Peter, Minn. — The City Council on Oct. 27 approved a five‑year extension of the Food Co‑op’s loan balloon payment, a move recommended by the EDA and city loan review committee.
Ben, a city staff member who presented the request, said the co‑op originally borrowed about $350,000 in 2010–11 to expand into a former Chevrolet dealership and later received extensions. "The interest rate was increased a little bit to 5.25," Ben said, explaining that the city’s adopted policy sets the rate at about 2 percent below prime for loans secured by real estate; with prime at roughly 7.25%, the secured loan rate comes to 5.25%. Ben added that the EDA's review committee and the EDA voted unanimously to recommend approval.
During discussion, Carrie, serving as the council liaison to the EDA, said she abstained from the earlier EDA vote and would abstain again because she participates on the EDA leadership team. At the council roll call the resolution carried with one recorded abstention by Council member Johnson.
Why it matters: The extension prevents the co‑op from having to pay the balloon amount immediately and keeps the locally managed revolving loan in place to support the grocery cooperative’s operation.
What’s next: The council approved the extension and staff will record the amended loan terms; the packet shows the interest rate adjustment and the EDA’s recommendation for approval.
Provenance: Presentation and vote recorded in transcript (topic introduction SEG 166; topic finish SEG 261).
