HomeMy WebLinkAboutResolution 70-1995 RESOLUTION NO. 70-95
WHEREAS, the City of Brookings purchased the property known as the Ron Reed EDC
(Economic Development Center in May 1986 for $275,000.00 and;
WHEREAS, the $275,000.00 was borrowed from the Brookings Telephone Department
without interest and $62,178.72 was repaid on the loan from a grant, leaving a balance of
$212,821.28 as of December 31, 1993 and;
WHEREAS, the EDC began paying off the loan at $12,000.00 annually in 1994, with the
intent to continue payments at this rate.
NOW, THEREFORE, BE IT RESOLVED that the City of Brookings Commission will
deed said property to the EDC when the balance is paid in full.
Passed and approved this 1 st day of August, 1995.
Mayor
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Finance fficer
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BROOKINGS AREA CHAMBER OF COMMERCE
ECONOMIC DEVELOPMENT DIVISION
P.O.Box 431•BROOf�NGS,SooTx Dnxarn 57006•(605)692-6125
Apri126, 1995
The Honorable Mayor Wayne Hauschild
City of Brookings
3113rd Ave.
Brookings, SD 57006
Dear Wayne;
At a recent meeting of the Board of Directors of the Ron Reed Economic Development
Center we discussed our pleasure at starting to pay back the city for expenses incuned in
originally developing the Center. A question did arise regarding the payback conditions
of the loan. We recognize that payment is to be made as it is possible,but if we should
be able to pay off the debt in it's entirery, who then owns the building, the EDC or the
City? The point of this is if equity is built up over time, and it becomes necessary to
move to other facilities, will the EDC have funds available to continue operation.
Since we're just getting started on the payback program it may be a good time to define
this point. Another bit of information is that the Center's tax I.D. number is the same as
the Chamber's. I'm not sure why this was done but there seems to be some logic in
obtaining a separate number. Since the City is closely involved in this subject I thought I
would obtain your inputs before any further contacts were made.
When a position is determined on equity and tax I.D. numbers,please advise and I'll meet
with the Commission as needed to finalize the questions.
ards,
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onald A. Patrick
Director of Economic Development
cc: City Commissioners
Finance Officer
City Engineer
BROOI�NGS, SOUTH DAKOTA THE BOTTOM LINE...AND BEYOND.