Grant could coincide with Hwy. 108 project

By Chad Koenen

Publisher

The Henning Economic Development Authority is putting the final touches on a program that could lead to big enhancements in the downtown business district.

During its regularly scheduled meeting last week, the Henning EDA discussed a program that could provide up to $5,000 in grants to Henning property owners in the business district. The EDA did not formally approve the plan as it is still working out the final details of the program with Otter Tail County, which could include fully forgivable $5,000 matching grants for cosmetic and exterior improvements to businesses.

Henning EDA member Andy Eckhoff said the city is eligible to receive $25,000 in grants as part of the project, which could be awarded to property owners along the Highway 108 corridor. The largest grant the EDA could award is $5,000.

As part of the program, property owners will receive dollar-for-dollar grant matching up to $5,000 for a cosmetic change like exterior paint, new doors, enhancing a decorative store front or even things like a new step or entrance. The county portion of the grant is forgiven on a sliding scale over the course of the grant with the property owner essentially paying for half of the total project.

“As long as the borrower has matching funds up to $5,000 they can basically get a $10,00 project done,” said EDA member Andy Eckhoff.

The biggest question last week was how quickly property owners could have the county portion of the project forgiven. 

Eckhoff said he would like to see the grant forgiven within three years, but the county recommended having 20 percent of the $5,000 grant forgiven each year over the course of five years. Meaning, if a person were to receive a grant and sell the building in three years, they would be responsible for paying 40 percent of the grant back to the county.

In order to make the program more affordable for property owners, the EDA discussed awarding $5,000 loans to cover the match part of the grant. If the program is approved as discussed, if the EDA loan was paid in full within one year the interest on the loan would be forgiven. The $5,000 EDA loan would not be forgiven like the county grant. 

“The EDA can front them the money for the $5,000 (match), or if they already have the money, they can just pay the $5,000,”  said Eckhoff.

With several property owners nearing the age of retirement, the EDA said it would like to see the grant forgiven as quickly as possible to get more people to buy into the program. The program can be used for a variety of cosmetic upgrades that could enhance the downtown area when the Highway 108 project comes through town later this year.

Should the EDA move forward with the program, members said it is important to keep the loan and grant program as easy as possible to get as many people to apply for the grant.

“I think we should keep it simple and make main street look nice,” said EDA member Nathan Thalmann.

The EDA members said they were in favor of the program, but did not formally adopt the downtown grant program as it is awaiting more information about the length of time a property owner must remain as the owner to have the full grant forgiven.