Milaca City issues loan to Princeton business
The Milaca City Council voted unanimously last Thursday to make a loan of $25,000 to Great Favor Properties, Princeton, to renovate the former National Bushing building on First Street West.
The loan comes from the Milaca Economic Development revolving loan fund that recently received $50,000 back from the Minnesota Community Capital Fund.
The building, one of three owned by Great Favor in that block, has been empty for a number of years since National Bushing located to a new building across the street.
Daryl Bronniche, managing partner at Great Favor, told council members that plans are to section off the building and lease those spaces to retail-type businesses.
“It’s unrentable at this time,” he told council members.
Councilman Wayne Bekius asked if the council would receive negative feedback for loaning $25,000 without anyone else knowing about it.
City Manager Greg Lerud replied that it had been talked about when funds were requested back from the Minnesota Community Capital Fund and Councilman Dave Dillan noted that the availability of funds had been in the paper several times.
Bronniche told council members interest has been shown from four groups and he thinks there will be more when renovation is complete.
The China Panda restaurant is located in the building for which the loan was made.
Asked when the project would be completed, Bronniche answered that it would “maybe be Jan. 1” but that it would depend on how serious the interest is by possible renters.
The term for the loan is $25,000, at 3 percent interest, and the loan will be secured with a second mortgage.