Isanti EDA backs $100,000 loan recommendation for Creary Kitchen & Tap House at 3%; moves to council

The Isanti Economic Development Authority recommended approval of a $100,000 loan to Creary Kitchen & Tap House LLC from the EDA revolving loan fund, voting to forward the measure to the city council with a proposed 3% interest rate.

Staff described the application and recommended allowing the $100,000 loan under the city’s restaurant recruitment program. Finance Director Soulberg said the EDA’s policy sets a 3% minimum and that the fund’s balance is roughly $180,000–$185,000. “It’s going to be roughly around that same 3%,” Soulberg said when asked about the fund’s current earnings.

Representatives of Creary Kitchen told the board they plan to use the loan for renovations and equipment, including a large equipment bid of about $200,000, and estimated total restaurant-side costs at roughly $650,000–$700,000. The applicants said they plan to use family cash and private loans initially and refinance the building to pay the loan back.

Board members discussed whether the fund should be offered at a lower rate (including proposals for 0% or 1%) and compared the EDA policy to other municipal lending practices. Staff noted the program’s goal is local economic use of the funds and that longer term loans (up to 10 years) would change risk assessments; the board favored a five-year term for quicker payback.

A board member said they would abstain from the recommendation vote because of a personal relationship with the applicants; the abstention was recorded in accordance with attorney guidance. The motion to recommend approval at 3% passed, 4–0 with one abstention. The EDA directed staff to prepare loan documents and forward the recommendation to city council for final approval.

Next steps: staff will draft the loan paperwork and present the recommendation and loan documents to the city council at its next meeting. If council approves the loan, staff will complete collateral and bank reviews before closing.