The Blue Earth EDA discussed the need for an updated fire alarm system at the Ag Center, above, at its regular March meeting, which was held on Thursday morning, March 9.

The Blue Earth Economic Development Authority (EDA) discussed reviving a vintage revolving loan fund program at a meeting held on Thursday, March 9.

According to EDA specialist Amy Schaefer, the EDA’s Utility Revolving Loan Fund has been out of use for decades now, but the fund still holds a sizeable amount of cash.

The program was originally designed to assist local businesses with projects involving lighting, HVAC and electrical work.

As is the case for many of the EDA’s loan programs, the Utility Revolving Loan Program is designed to give area businesses access to funds for new and existing business expansion and for retaining or expanding their employment. The program also aims to expand Blue Earth’s tax base and encourage new business investment in the community.

“It is fully intended that all funds repaid to the EDA Utility Revolving Loan Fund by any borrower be re-loaned to other businesses for additional expansion and economic development projects within the city,” the program description clarifies.

Schaefer said she had consulted Tim Stoner, manager of Blue Earth Light & Water (BELW), to gauge the feasibility of making the program operational once more. Stoner had recommended she re-write the program and bring it to the EDA for their approval.

Schaefer also explained, “Since this utility money is specifically here (in the Utility Revolving Loan Fund), I’d like to take it out of the Commercial Improvement Grant Fund.” 

Going forward, projects which would previously have been approved under the Commercial Improvement Grant Program would instead be approved as part of the Utility Revolving Loan Fund Program.

City administrator Mary Kennedy also clarified that loans awarded through the Utility Revolving Loan Fund Program would not be forgivable loans.

The EDA approved reviving the program with a cap of $25,000.

“I think there’s a need for it,” EDA board member Lissia Laehn observed.

The EDA also approved two quotes from Johnson Controls Fire Protection LP and Tvedten Electric for the replacement of fire panels, installation of sprinkler devices, installation of new fire alarms and programming and testing of the new devices at the Ag Center.

Johnson Controls quoted $37,994.79 to replace the Ag Center’s four existing fire panels with a single control panel, provide sprinkler systems in necessary areas of the building and program and test the final alarm system.

Tvedten quoted $42,383.44 for the installation of fire alarm systems throughout the building. Between the two quotes, the project’s total cost comes to $80,378.23.

Kennedy noted that $60,000 has already been earmarked for the project, and the Ag Center has additional funds available in the budget due to an oversight.

Devin Greenside, maintenance person at the Ag Center, shared, “The fire alarm was installed in the 1990s. The average lifespan of a fire alarm system is about 20 years. We’ve been having a lot of false alarms from aging detectors.” 

“At some point, you’ve got to upgrade the systems,” board member Dan Ristau agreed. “We have the money now.” 

“We’ve got tons of tenants in there,” Kennedy concluded. “We have a responsibility to make it a great place to do business, and part of that is a safety responsibility.” 

In other business, the Blue Earth EDA: 

• Approved a Commercial Improvement Forgivable Loan request from Heartland Rentals for a project to update the ceiling and lighting in the nearby H&R Block office space. The project is estimated to cost $494, and the EDA will contribute $247, or 50 percent of the project’s cost.

• Approved a budgeted annual donation of $500 to the Southern Minnesota Initiative Foundation.

• Heard an update from Blue Earth Chamber of Commerce director Shellie Poetter, who said the Chamber is still accepting reservations for its annual banquet on Friday, March 17.