Council lends to Beacon, Hermann Monument group
By Ron Larsen — Staff WriterNEW ULM - The New Ulm City Council was definitely in a lending mood Tuesday.
Councilors approved a $250,000 Economic Development Revolving Loan Fund loan to Beacon Promotions, Inc., and they agreed to provide the Hermann Monument Society with a loan up to $20,000 if needed in completing its monument fence project.
Beacon Promotions' president, Arthur Olsen of New Ulm, was on hand with his finance director to give the councilors a brief overview of where Beacon Promotions is at currently.
Olsen told the councilors the $250,000 loan from New Ulm's revolving loan fund would help the company meet additional working capital and staffing needs as a result of the firm's purchase of the Ready Reference Line of Pocket and Desk Planners, including the license of The Old Farmer's Almanac, from the Consumer & Office Products Business of the MeadWestvaco Corp.
"All customer service, order processing, sales and imprinting for the acquisition is now being done at the existing Beacon facilities in New Ulm," Olsen said.
"Beacon is using its Telecom building for manufacturing this new product line. To date, Beacon has spent $98,654 on building renovations, which include the addition of a shipping dock, install heat and A/C, electrical and computer hook-ups. We anticipate adding three full-time jobs in 2009 and using 10-15 seasonal workers during the last two quarters of each year going forward," he said.
"We have been able to maintain the same size workforce that existed prior to the acquisition, as opposed to laying off employees due to worsening economic conditions."
In moving to approve, Councilor Ken RockVam said he was glad to hear to those job numbers.
As the Hermann Monument Society is continuing its drive to raise funds for replacing the old chain-link fence around the monument before this September's Hermann Victory celebration, the Society sought the loan to help them complete the fund-raising in time to have the fence installed before the celebration.
It currently has $48,800, mostly by soliciting sponsors for paverstones and benches, and the project is estimated to cost about $73,000, the council was told. While the existing fence provides the necessary security, ''The new fence provides security and improved aesthetics (which was the HMS goal)," Park and Rec Director Tom Schmitz told the councilors in an Action statement. So, in approving the loan, the council also accepted the fence as a gift to the city.
The issuance of an optional 2 A.M. closing liquor license for the B&L Bar, Inc. and RODZ, Inc., owner of Rodney's Bar, had the council back-pedaling because no one's sure the city can issue one as the State may be the only entity that can issue one. So, before going forward on the matter, councilors requested that City Attorney Hugh Nierengarten check it out and report back to the council.
In other action, the council:
Set an interest rate of 4.95 percent for special assessments levied for projects financed by General Obligation Permanent Improvement Revolving Fund Bonds, Series 2009A."
Authorized the issuance and establishing the terms and conditions of sale for General Obligation Refunding Sales Tax Revenue Bonds, Series 2009C.
Approved the final assessment rolls for the 2006/2007 North Highland Avenue Phase I & Phase II Improvement Project and set a date for public hearing for Tuesday, July 21, 2009, at 7 p.m.
Authorized city staff to proceed with the establishment of a Tax Increment Financing (TIF) District to assist Winkelman Building Corp. with the construction of an apartment building at 2107 North Highland Avenue while de-certifying Tax Increment Financing (TIF) District H-4, Winkelman building Corp.) at 2107 N. Highland Ave.
Ron Larsen can be reached at rlarsen@nujournal.com.
