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EDA conditionally approves $10,000 forgivable loan for Ace Hardware exterior renovations
Summary
Forest LakeEDA voted to approve Resolution 0612601, a conditional $10,000 forgivable loan to support exterior renovations at 67791 Lake Street South for Ace Hardware (payment is post-construction and contingent on permits, approved plans, and documentation of completed work).
The Forest Lake Economic Development Authority voted to approve Resolution 0612601, authorizing a conditional $10,000 forgivable loan to support exterior renovations at 67791 Lake Street South, the building Ace Hardware plans to occupy.
Abby (EDA staff) told the authority the EDACIP program operates as a forgivable loan paid after construction: "it's our way of saying it's a grant" and the award is contingent on submission of complete application materials, issuance of city permits, construction per approved plans and documentation before funds are disbursed. Staff said the applicant expects the project to be well over $1 million, and most work is focused on 91 Lake Street South.
Commissioners asked whether the $10,000 award applied across three adjacent addresses included in the project (67, 79 and 91 Lake Street South). Abby explained the program is structured around the project rather than strictly per-property awards: the EDA reimburses a percentage of eligible expenses (50% up to $5,000 for projects up to $10,000, and 25% up to $10,000 for projects over $10,000), meaning a project generally must spend about $40,000 to receive the full $10,000 award.
A motion to approve staffrecommendation was moved and seconded; the motion passed (the transcript records an opposed vote but no roll-call tally was provided). Staff said the award presents no short-term financial risk to the EDA because funds are only paid after the applicant meets the conditions.
What happens next: staff will confirm final application materials and the address(es) listed in the agreement (staff noted the packet header referenced an outdated address) and the attorney will review the document language to ensure accounts and PID(s) are correctly identified before final execution. If the owner proceeds and satisfies conditions, the forgivable loan will be issued after completion and documentation of eligible work.
Authorities and actions - Resolution 0612601: recommended conditional forgivable loan of $10,000 for exterior renovations at 67791 Lake Street South (described as former Tradewind Sports/Lake Area Bank building). The motion was approved; mover/second and vote counts are not specified in the transcript.
Ending: The EDA approved staff's recommendation and directed staff and legal counsel to finalize application details and documentation prior to disbursement.
