The City of Lanesboro supports its local entrepreneurs

A common theme at the July 5 Lanesborough City Council meeting was supporting local businesses. Joe Goetzke reported that EDA is working on a short-term business interruption loan; this loan will be available to business owners when natural disasters, pandemics or street construction disrupt their business operations. Intended to be a quick, easy loan to cover items such as utilities, rent or employee salaries. Loans will have a limit of $5,000 at 0% interest.

The council also looked at helping Sparrow Valley Properties with funding as it tries to renovate the old Methodist Church property into nine flats. The council is considering a $50,000 abatement on the property and is applying for a $75,000 loan from MiEnergy. The city will provide the loan at 1% interest for seven years and offer it to the developer at 2% interest for the same period of time. During the tax break period, the developer will not have to pay taxes on the property. The developer will be responsible for the costs incurred in obtaining the loan.

There has been some confusion about the emissions reduction period. Public finance advisor Mike Bubani of David Drown Associates will review the timeline. Bubany advised the council that this would still be a bond issue that would be sold to MiEnergy. He noted that the $125,000 in tax breaks will show up for the city. A public hearing must also be held. Bubany will draw up a timetable for the process. The council tabled the matter until its next meeting.

LEAN (Lanesboro Entrepreneurial Action Network) is the name of the new EDA subcommittee. New businesses will have access to REV’s roadmap, which clearly outlines who to turn to for help, resources and entrepreneur banks. The EDA secured $225,000 in funding, which allowed them to hire Kathy Enerson as EDA Director.

Alissa Oeltjenbruns of SMIF detailed the benefits of SMIF’s work with the City of Lanesboro. SMIF operates in a 20-county region and has helped 1,800 businesses during the pandemic. Oeltjenbruns shared that SMIF has helped with early childhood support and childcare shortages. She reminded council that consultant Jeff Andrews is available to mentor and assist new childcare businesses.

The Lanesboro Library just received 1,000 books from SMIF. Lanesborough also received $10,000 in a COVID grant and $10,000 in an ability grant, as well as paint for some buildings.

During the new business portion of their meeting, the council continued to support businesses as they dealt with liquor licensing. Currently, the types of liquor licenses and the number of licenses allowed in the city are unclear. This will be clarified by officials before work on the ordinance is completed.

The Tobacco Licensing Ordinance is outdated; it was suggested that the ordinance refer to the state statute instead of specifying an age in the ordinance. Liquor and tobacco licensing regulations were introduced.

Lanesboro currently does not have an ordinance for the sale of CBD/Hemp/Cannabis. With the fluidity of the issue at the state level, Mayor Jason Resseman recommended simply following state guidelines at this point and putting the topic out there for six months.

A local hemp grower spoke from the audience, concerned that this performance would affect his business. He has been selling from his farm outside the city limits, but plans to open a storefront in Lanesboro soon. They assured him that if he followed state laws, he would have no problems as long as he sold from a storefront.

Still showing concern for local developers, the council was careful to assure the public that funding the street and utility improvements would not result in an increase in city taxes.

Mike Bubani presented his recommendation on F&M Community Bank’s proposal – a $570,000 bond issue at a fixed rate of 3.85%. All special assessments will go toward this portion of the debt. This requires grades to be certified this fall. Sewer and water rates would be used to cover this without tax increases. After ensuring that there would be no increase in tax levies, the proposal was approved.

Another business

In other matters, the council:

• Approved payment request #19 for the new wastewater treatment project, which will soon go online;

• Approved a change order allowing the street/utility project to be split over the next two years;

I heard from Preston Police Chief Blaise Sasse that a 2022 Dodge Charger was purchased as well as new tasers;

• Discussed sidewalk replacements with Public Works Director David Haugen; the council will decide next month whether or not to extend the sidewalks after studying the expected costs and ADA requirements.

The next Lanesborough Town Council meeting will be held on Monday, August 1st at 6:00pm in the Lanesborough Community Center meeting room. The public is welcome to attend.