Rushford Revises Business Program

The Rushford Economic Development Authority (EDA) has recently reworked its Business Subsidy and Revolving Loan Program. The program has previously offered financial assistance to businesses filling empty commercial spaces. Now, funding will be available for eligible existing businesses seeking to renovate their space. The Rushford City Council discussed the program at the August 28 meeting.

According to City Councilor Sally Ryman, the EDA considered writing a separate program for renovations but opted to combine them. “They were so similar. It just made sense to roll them together,” she noted.

The only significant change to the program is the renovation piece, which the council approved unanimously. Eligible borrowers include for-profit and non-profit entities wanting to fill or renovate commercial space in the city, which leads to economic benefits as determined by the EDA/city.

The loans are up to $50,000 and are not to exceed 40% of the total project cost. Applicants must source the remaining amount. Refinancing an existing debt is an eligible program expense. The terms of the loan may be negot

iable, depending on needs, but are 20 years for building or land acquisition, 15 years for building renovation, seven years for machinery/equipment, and one to five years for working capital and inventory. The interest rate is 2.5%, and no payment is due in the first year.

Forgivable loan terms include that 10% of the original loan may be forgiven on years 6-10, up to 50 percent of the loan. This term is only open to applicants in good standing on monthly payments, taxes, utilities, and other charges due to the city. If a property is sold or transferred, the borrower must repay the loan unless approval is granted by the EDA/city, allowing another party to assume or transfer the loan.

City Administrator Tony Chladek sent the program details to lenders. The EDA will continue other marketing of it. New Rushford Peterson Valley Chamber of Commerce Director Stephanie Eggert has contacted the city about further opportunities to get the word out, including a possible open-door event.

“Thanks for the work. I hope it entices some people,” said Mayor Terri Benson.

In other news, the council has formally approved the plans and process for the Susan Hart Memorial Gazebo. The Rushford Library Board put the project together in memory of longtime librarian Susan Hart, who passed away in January 2022.

The library board will construct the gazebo on the western portion of the land behind the library and city hall. The board met its goal of $70,000 in funding, secured via private donations and a Southern Minnesota Initiative Foundation (SMIF) grant.

Library Director Beth Nelson stated the library board will work out specification sheets for potential contractors and has staked out the site preliminarily. With the size of the project, it isn’t big enough to require competitive bids, but the board will seek multiple quotes from local contractors. There is no timeframe for the construction.

The council also approved a resolution acknowledging SMIF grant funding of $10,000. The funding is to aid the trail extension project on the west side of Eiken Drive. The trail, a partnership between the city and Rushford Peterson School District, will connect existing city sidewalks and paths to the school property.

There was discussion regarding the use of motorized vehicles on the new trail. Councilor Jim O’Donnell noted the issue was brought up to him again by a concerned member of the public.

“You’ve got coaches and staff driving their own vehicles down there,” noted O’Donnell.

City Clerk Kathy Zacher indicated the Rushford Police Department did speak with one person who drove their vehicle down to watch their child at the athletic fields.

The trail is open to bike and pedestrian-only, but city maintenance vehicles are permitted. Signs noting “authorized usage only” are ordered and will be installed. Electrical wiring is in place for the trail lighting, and the fixtures have arrived. The city is waiting on the poles to complete that portion of the project. Public Works has finished seeding and laying straw mulch on the sides of the trail.

The water tower cleaning/painting project is continuing at a steady pace. The sandblasting of the interior and exterior is complete. The city anticipates project completion by the end of September.

“It’s looking good,” said Councilor Leigh Volkman. “They seem to be pretty serious about what they’re doing. They’re not messing around.”

The council expects a closed-session meeting to discuss union contracts for city employees next month. The city has yet to begin meeting with union representatives.

Lastly, the council thanked the Rushford Fire Department for hosting an impromptu event during the intense heat on August 23. The department set up trucks near the Brooklyn Bridge, creating a large sprinkler for area children. The “sprinkler” ran for 65 minutes, and the water accounted for.

“It was very nice for the fire department to do,” noted Ryman.

The next regularly scheduled council meeting is Monday, September 11, at 6:30 p.m. at city hall. The public is encouraged to attend.