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Long Prairie council authorizes $50,000 interfund loan to advance ECP Food Warehouse TIF project
Summary
After a public hearing, the council adopted Resolution No. 25-5-14-15 authorizing an interfund loan of up to $50,000 at 5% interest to advance qualified costs for Tax Increment Financing District No.1-17 (ECP Food Warehouse), citing an anticipated $10 million project, roughly $200,000 increased tax capacity and 15–25 jobs.
The Long Prairie City Council voted unanimously on May 14 to authorize an interfund loan of up to $50,000 to advance qualified costs for Tax Increment Financing District No. 1-17, the ECP Food Warehouse expansion. Council member JoAnn Schroeder introduced Resolution No. 25-5-14-15, which sets the loan interest rate at five percent and provides that repayment will come solely from "Available Tax Increment."
Todd Hagen of Ehlers, who addressed the council during the required public hearing, said the proposal would accelerate an approximately $10-million expansion in the Long Prairie SW Industrial Park and estimated it would increase the tax capacity by about $200,000 and add 15–25 jobs. "This expansion will bring a 10-million-dollar project into the City of Long Prairies industrial park and will increase the tax capacity for the future, estimated at about $200,000," Hagen said. The hearing record shows the required public notices and notices to the school district and county were completed.
The resolution specifies that principal and interest payments will be made only from tax increment identified as "Available Tax Increment" and notes that such payments may be subordinated to bonds or other obligations secured by TIF increments. The council recorded the motion by Schroeder, seconded by Council member Lilah Gripne, and approved the measure unanimously.
The council's action enables the city to advance funds so the developer can proceed more quickly, with the city retaining authority to amend or forgive the interfund loan within legal limits. The resolution cites Minnesota Statutes, including Section 469.178, Subd. 7, governing advances for TIF-qualified costs.
