The Crookston Housing and Economic Development Authority (CHEDA) board met on Tuesday morning. After many discussions on childcare, a center took a big step forward in May when the board appropriated $50,000 to the buildout of a center at Marywood.
On Tuesday, CHEDA Executive Director Craig Hoiseth told the board that community partners had stepped up with a series of grants that will cover the cost of the buildout. “We spent several months, actually years, debating a childcare center in and around Crookston,” said Hoiseth. “There was some concern that should we be putting forth Crookston taxpayer resident money into this program. I’m glad to report that our partners have stepped forward in a grand fashion. Grants from Otter Tail Power Company, Halstad Telephone Company, Northwest Minnesota Foundation, Crookston Township, and DEED are being pooled together to and are about $45,000 to be used for the buildout. So the $50,000 that the CHEDA board boldly provided in May won’t be necessary for the buildout, which is exciting. We’re able to save that taxpayer money and tell a really good story that our partners are willing to step up and address this childcare situation.”
The board then doubled down on trying to fix the childcare issue by stating the $50,000 should still be used to help childcare elsewhere in the community. “The board did say that the $50,000 they’d appropriated should continue to move forward on childcare and childcare problems,” said Hoiseth. “That might be other centers that are in and around town and also home daycares if there is something we can do. That $50,000 appropriated for childcare is not going away from the CHEDA Board. They want to keep it front and center. I’m excited about that because we knew this wouldn’t be a one-stop-shop. It’s going to take a comprehensive effort. The final thing was a collaboration partnership being developed to encourage more staffing and staff education to try to get people into that profession. Hopefully, we’ll have some more answers as the year progresses.”
The board approved a loan for $3,500 a month to Vertical Malt for a consultant to prepare a design, finance, construct and open a new malthouse in Crookston. “Vertical Malt is doing a fantastic job,” said Hoiseth. “They are making a great product. Their customers are excited about them, and they are working very hard. But eventually what you have to do is spread your wings, get your facility, and expand. That takes some risk, and we’re calculating that risk. Vertical Malt needs to keep its employees on making malt product, making cash flow. So the loan that was approved today is essentially accumulative. Every month add to the loan and pay for the services of a consultant that will be rendered toward developing financing packages, building design, the building, construction, and commissioning of their malt house.”
As part of the loan, Vertical Malt will need to provide quarterly updates on their progress to the CHEDA board. “The board did set some parameters on it,” said Hoiseth. “They want to see at least a quarterly type of review where we see Mr. Adam Wagner come talk to the board about milestones that are being achieved. It’s an exciting day for Vertical Malt here at CHEDA.”
The board also requested Hoiseth find remedies for two outstanding revolving loans to A+ Mobile Brake & Small Engine Repair and Chickadee Coffee Roasters that are past due. “We’ve got several revolving loans out, and most are on time with their payments,” said Hoiseth. “We also see some that are habitually late or past due on their accounts. The board was saying it doesn’t help the business being late. They need to be accountable for debt to service. A couple of those that have been past due for a while is Chickadee Roasted Coffee, and A+ Brakes. The board gave me direction to move forward with some legal remedy to maybe collect on the collateral or whatnot. Because, if the loans aren’t being paid back, then we need to shut that down, move forward and go on to the next customer.”
The board also approved a B3 grant to Biermaier Chiropractic for a new HVAC system and a $1,000 grant from Minnesota Business Finance Corp for the coworking space at Valley Tech Park. The repairs at Oak Court have been delayed as there is currently a question as to whether the building will need a fire suppression system. The building was built in 1969 and has never had one. The board also approved Hoiseth to work on finalizing the sale of CHEDA property to APG Development.
