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St. Paul council approves $30,000 REDLG loan for 'The Den' diner and agrees to split paving costs for vacated 3rd Street
Summary
The council approved a $30,000 REDLG loan for a proposed diner with a personal-guarantee requirement, and agreed to absorb half the paving cost of a vacated 3rd Street segment with assessment to property owners on future sale or development.
The St. Paul City Council on Aug. 19 approved a Rural Economic Development Loan Grant application to support a proposed downtown breakfast-and-lunch diner called "The Den." Parker Klinginsmith, executive director of the St. Paul Development Corp., presented the request, and council members approved a $30,000 loan over seven years at 4.50% interest, authorizing the Loan Agreement, Promissory Note and Commercial Security Agreement and adding a personal guarantee clause to the documents.
Council member Katie Kowalski moved to approve the REDLG application and related loan documents; Council member Brian Sack seconded the motion and the vote was 4–0 in favor.
Separately, property owner Blake Schwartz requested to open and pave a vacated portion of 3rd Street north of "0" Street and offered to pay half the paving cost. Utilities Superintendent Helzer presented estimated storm-sewer costs and street-paving figures. The council approved the city absorbing half the estimated paving cost, with the city's portion to be paid from the 25% infrastructure fund and ultimately assessed to owners of Block Thirty Five and the vacated 33 feet when any portion of the property is developed or sold.
Council member Chuck Schmid moved to approve the paving arrangement; Council member Katie Kowalski seconded and the motion passed unanimously.
