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EGF council approves loan for new retail business

By Doug Barrett Jun 23, 2021 | 7:09 AM

In the hopes of landing a furniture store the East Grand Forks council last night (Tuesday) approved an EDA loan to St Michel LLC.  The company plans to use the loan along with existing funds and two-million dollars from lenders to purchase and fit-up the former Shopko/Pamida store.

The actual size of the loan totals $149,999 dollars.  City Attorney Ron Galstad says the odd number is designed to fall underneath Minnesota statutes of what is classified as a business grant or subsidy.  “In this case it’s not a grant and we are not giving away money.  Economically for the city and company it doesn’t make sense to classify it as a business subsidy.”

The furniture store would occupy 30,000 square feet of space in the building with the remaining 10,000 set aside a secondary tenant.  The total project cost of the project is pegged at around $2.3 million dollars.

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