Akron council grants ‘Revolving Loan Fund’ loan

Posted November 7, 2019 at 11:13 pm

By Julie Ann Madden

A new Akron business will benefit from the city’s Revolving Loan Fund.

At their Oct. 22 meeting, Akron councilors unanimously approved giving $50,000 of the Revolving Loan Fund to Wendt’s Repair owners Jason and Jessica Wendt of rural Le Mars.

The $50,000 loan with a 1 percent interest rate is for seven years, Akron City Administrator Dan Rolfes told the council.

The Revolving Loan Fund Committee made the recommendation prior to the council meeting. Committee members are Rolfes, Melea Nielsen, Marlys Johnson, Connie Blake and Mike Hohenstein.

The city’s Revolving Loan Fund was started in 2014 with a United States Rural Economic Development Loan & Grant Program, which provided zero-interest loans to utilities that lend funds to local businesses for projects to create and retain employment in rural areas. The program promotes the development of small and emerging businesses in rural areas.

According to an April 9, 2014 Hometowner story, the first project to receive Revolving Loan Fund dollars was the Akron Development Corporation for $211,000 with a zero percent interest rate for the construction of the spec building, which now houses Broken Kettle Wine Cellars and Impact Physical Therapy & Wellness.

Akron Lumber Company owner Joe Van Walbeek also received a Revolving Loan Fund.

These Revolving Loan Fund grants will have a loan servicing fee not to exceed 1 percent per year on the outstanding principal, and future loans may have an interest rate not higher than the prevailing prime rate published in The Wall Street Journal.

All projects if not managed by the city officials Electric Department, will be approved by Rural Development which will maintain decision-making control and authority over all proceeds directly derived from the grant and all future earnings and repayments of loans.

In other business, the Council:

• Unanimously approved a resolution approving the Urban Renewal Plan Amendment for the Akron Urban Renewal Area. This amendment allows city officials to borrow up to $875,000 for the First Street Improvement Project and use Tax Incremental Financing (TIF) dollars from the Urban Renewal Area’s property tax revenues for repayment.

• Unanimously approved renewing Throttles & Bottles Bar & Grill’s liquor license.

All unanimous votes were 5-0 as all councilors were present.

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