The Crookston Housing and Economic Development Authority (CHEDA) board met on Tuesday morning and passed a resolution approving a loan agreement between CHEDA and Epitome Energy which includes a business subsidy. According to Executive Director Craig Hoiseth, Epitome Energy has verbally agreed to the loan agreement and the resolution will lead to the next step of executing said agreement. “The special meeting of the CHEDA Board of Commissioners met this morning,” said Hoiseth. “We had a discussion regarding Epitome Energy and that business subsidy of $250,000. Due to State Statute, you’re not allowed to call it a grant, it’s a forgivable loan. So, the Board of Commissioners did agree this morning and passed a resolution to provide that [loan] to Epitome.”
Full payment of the outstanding principal of the loan will be payable on the first day of the 24th month following the loan closing date (Maturity Date) but shall be forgiven in full if all the following conditions are satisfied on or before the maturity date.
- The reports and permits are completed and obtained by the borrower
- The borrower obtains all the necessary permits required for construction and operation of the facility
- The borrower acquires the property on which the facility is to be developed within two years after the loan closing date
- The borrower commences construction of the facility
Board Chair Kurt Heldstab asked Hoiseth what was allowed if board members were interested in investing in Epitome Energy under the City of Crookston’s new Code of Conduct. “I think that the Code of Conduct, Code of Ethics that was passed by City Council this past spring/summer identifies this somewhat,” said Hoiseth. “Anybody who wants to invest in a company or something they are voting on or considering has to disclose the fact they’ve chosen to invest. They don’t have to disclose how much or how active but they do need to, for common interest/best practice, it’s best to identify they want to invest in the company. Hopefully, we do see quite a few people in the room who want to invest in Epitome. It’s a great opportunity and could show a great rate of return.”
Hoiseth also invited any interested party from the Board of Commissioners, City Council and the City and CHEDA staffs to a meeting on Wednesday with Brian Holmer, Mayor of Thief River Falls, for a presentation on successful bonding. “Brian Holmer has been graciously willing to sit down and talk with us about their successful bonding up in Thief River Falls,” said Hoiseth. “It’s territory you just don’t go on every day. And being able to talk to the Mayor of Thief River tomorrow will be an exciting opportunity for us to get better educated on how we approach St. Paul for bonding this project.”