City developing loan delinquency policy
November 22nd, 2007The City of Gaylord is developing a delinquency policy for the business revolving loan fund.
Troy Bonkowske, Gaylord’s Economic Development Coordinator, developed the policy, which is similar to those used by Region Nine and Sibley County.
The city does not have any delinquency policy. If the policy is approved, it would take effect with new loans.
Gaylord’s proposed policy explains the actions that will take place during the first, second, and third month of delinquency. According to the policy, with the first occurrence of a returned check, staff will contact the borrower and there will be a 2.5% late fee after 15 days and a $30 returned check fee with each occurrence.
The policy would also allow for loan restructuring if mutually agreed upon. Any restructuring would have a $300 fee.
The EDA is expected to consider the policy in December.
In other business, the EDA:
• Learned that a party would be viewing the Entegris building this week. Bonkowske also presented several ideas for marketing the building, which included distributing brochures, Web site, Minnesota State Real Estate magazine and journal, and targeted mailings within a 50 mile radius.
• By consensus, agreed to pay for stump removal and soil borings for the Main Avenue lot, totaling $9,110, from the EDA’s general fund checking account.
• Discussed proposals for eight and 10 foot outdoor display signs for the mini strip mall that is being constructed. The city agreed that it would pay for the community sign to be placed on the southeast corner of the lot.
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