Numerous local businesses large and small, established and new have recently requested funding from the Cook County Revolving Loan Fund. On October 9, the county board followed the Revolving Loan Fund Committee’s recommendations from its September meeting by approving requests in the following amounts: . 1010 Interiors: $5,000 loan over five years at 1.5 percent over the 10-year T-bond rate. Part of a $15,000 project to improve building insulation and equipment. . Shawn Maravigli: $10,650 loan over 10 years at 1.5 percent over the 10-year T-bond rate. Will help toward the $12,650 purchase of a client list and equipment for a lawn maintenance business. . Lutsen Mountains: $25,000 loan over 10 years at 1.5 percent over the 10-year T-bond rate. To be used toward the purchase of 43 snow guns at a cost of $956,750. . Lutsen Mountains: $49,000 loan over 20 years at 1 percent over the 10-year T-bond rate. To cover one-third of the cost of buying five acres of land adjacent to the ski hill parking lot from George Nelson.
Lutsen Mountains Co-President Tom Rider said the purchase was part of a deal with George Nelson in which the ski hill agreed to sell four acres of its land adjacent to Superior National Golf Course at Lutsen to the Cook County/Grand Marais Economic Development Authority (EDA). Commissioner Sue Hakes said she did not want her approval of this Revolving Loan Fund request to be construed as approval for the EDA to purchase four acres of land. That would need to be discussed with the county board before she would consider approving such a purchase, she said. . Cook County Whole Foods Co-Op: $75,000 loan over 10 years, at 1.5 percent over the 10-year T-bond rate, contingent on a loan commitment from North Shore Federal Credit Union. Part of a $2.4 million project to construct a new 6,500-squarefoot retail building.
The board remarked about how the co-op began operating on Betsy Bowen’s porch on Good Harbor Hill 36 years ago. . Superior Zip Lines/Matt Geretschlaeger: Replacing a revolving loan agreement with Matt Geretschlaeger that had been approved in July with a new agreement. The loan amount will remain the same: $250,000 for 20 years at 7 percent interest.
The first agreement was contingent on a bank loan and a loan of $250,000 from the Iron Range Resource and Rehabilitation Board (IRRRB). Geretschlaeger was not able to procure a bank loan. This loan is contingent on Geretschlaeger borrowing $350,000 from the IRRRB. He would use several pieces of property as collateral and the county would be in a first or second position to take the collateral if the loan is not repaid.
The lodge building has been reduced in order to bring the project cost down from $929,300 to $825,000. Part of the financing includes promissory notes totaling $110,000 from contractors willing to loan money for the project.
“I’m very comfortable with the collateral,” Commissioner Bruce Martinson said. Commissioner Sue Hakes said she didn’t think Geretschlaeger’s collateral was enough and it was too much of a risk for the county.
Revolving Loan Fund Committee member Gene Erickson said the fund’s defaults have been less than 3 percent throughout its history – this is better than banks do, he said.
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