EDA Meeting Date: March 24, 2025
To: Members of the Economic Development Authority
From: Nate Carlson, Economic Development Coordinator
Title
EDA Revolving Loan Application - Loon Liquors, LLC (Second Loan - Equipment)
Body
Action Requested:
The Economic Development Authority is being ask to consider a motion to approve Resolution 2025-003 Approval of a second Revolving Loan in the amount of $200,000.00 to Loon Liquors LLC for the Purchase Equipment for Relocation and Expansion of Distillery Business.
Summary Report:
Loon Liquor, LLC is requesting an additional $200,000.00 Loan from the EDA City-Wide Revolving Loan Program. On April 23, 2024, the City Council and Loon executed a purchase agreement for the city-owned property at 115 5th Street W (formerly known as the Northfield News Building) as their future home for the business.
The EDA Board approved a loan request of $200,000.00 on November 25, 2024, via Resolution 2024-007. See attached.
The reason for their request for additional funding is due to a local economic development partner not approving their $200,000.00 loan request, which has created another funding gap. Additionally, there are possible environmental concerns that may need mitigation depending on spring time soil samples. These added environmental costs were not originally budgeted during Loon's previous EDA loan request.
Loon has approved financing through Community Resource Bank as the lead financier as well as the SBA and Rice County. Rice County has approved a $75,000.00 gap loan, which is more than their typical $50,000.00 loan amount.
Loon Liquor has been in operation for over 10 years. The craft distillery is owned and operated by its two co-founders Simeon Rossi and Mark Schiller, who are Northfield High School friends. The company was established in 2011 and has been producing certified organic spirits since 2014. They were the first legal distillery in Southern Minnesota in over 100 years. Distilleries were not allow...
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