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Council authorizes up-to-$500,000 bridge loan from sewer fund for Heartland Heights
Summary
Council approved Resolution #2026-47 to provide Heartland Lakes Development Commission an up-to-$500,000 bridge loan at 4% interest (to be issued from the city's sewer fund), repayable from parcel sales with semi-annual interest payments; council recorded unanimous approval.
The Park Rapids City Council on March 10 approved a bridge loan resolution to assist the Heartland Heights development if a funding shortfall occurs. The loan authorization caps at $500,000 with a proposed 4% interest rate; staff explained repayment of principal is expected as parcels sell and interest would be paid semi-annually.
Staff clarified the loan differs from prior revolving-loan-fund financing: this bridge loan would come from the city’s sewer fund because infrastructure installed for the project will be turned over to the city upon completion. Council members described the arrangement as uncommon but acceptable given the infrastructure transfer; Resolution #2026-47 was moved, seconded and carried unanimously.
