FAIRMONT– The Fairmont Economic Development Authority (FEDA) Board on Monday heard from Economic Development Coordinator, Ned Koppen, who shared some information on a facade loan program.

Koppen told the board that he wasn’t yet looking for approval for the program, but just the okay to keep moving forward with it.

He said that it’s similar to the already existing micro loan program, except that whereas that’s a $10,000 loan, up to 50 percent of a project, the facade program is a $5,000 loan. Koppen also said he’d like to make it a forgivable loan.

“The gist of it is kind of the same. The qualifying expenses we’ve taken out, equipment and other, it’s all about the exterior, mostly front-facing portion of a business. Signage, windows, entryway, that kind of thing,” Koppen said.

While the max for the loan would be $5,000, Koppen said the interest will be paid each month, but none of the principal. If they stay in business for a year, 20 percent of the principal will be forgiven and if they stay in business five years, all of it will have been forgiven.

Koppen suggested the program be funded by taking $20,000 out of reserves, which FEDA has, and the interest collected on the money they’re lending.

“We could help out eight businesses this year if eight take advantage of it,” Koppen said.

He said he likes that the program could make a difference for some businesses and that it’s also good use of FEDA’s funds. He asked the board if it had any other ideas for the program.

Board Member Aaron Speltz asked how Koppen envisioned the application process taking place. Koppen said that he expects the application to go through the loan committee, which will provide a recommendation to the board.

“It sounds like a great incentive. I would hope that there are businesses that could utilize this in Fairmont,” said Board Member Sarah Gerhard.

Koppen said that if the program is successful, they could keep it going for another 50 years. If not, they can dissolve it.

The board agreed it was a good idea and passed a motion to have Koppen continue to work on setting up the program.

The board also briefly discussed progress regarding the incubator building.

Several months ago the board began discussing the future of the Business Development Center, also known as the incubator building, located at 426 Winnebago Ave.

Traditionally, incubator office space is leased to new businesses below market value to allow them a successful start. However, Fairmont’s incubator building, which FEDA owns, has five tenants with the majority having been in the space for five or more years.

Along with the building not being used as intended, a facility assessment showed a number of issues that would need to be addressed in the coming years and the board discussed putting it up for sale.

At last month’s meeting, the board approved a Request for Proposal (RFP) for the incubator building. Koppen said it was posted on FEDA’s website last week. Since then, Koppen said he’s been working directly with people and businesses that he knows have an interest in the building.

“There’s no obligation in the RFP that we have to sell it to someone… we have the availability to chose the one we like the best and move forward. If none of them make any sense, we’re still in business, we still own it,” Koppen said.

The RFP is open until Feb. 15.

Moving to other matters, the board spoke about its plan to purchase property on Hwy 39. The land would be used as a new industrial park. Koppen said he’s been in contact with David Meschke, the property owner, who asked for an extension on the purchase of the property.

“I don’t see the harm… we could agree to close the deal in six months,” Koppen said.

The board expressed some hesitancy with the delay and said the language in the agreement has to be clear.

In other news:

— The board approved annual due fees of $2,500 for CVN (Community Venture Network).

–The board approved an extension on a loan for Fairmont Butcher Block.

— New board member, Brian Roggow, joined the board at Monday’s meeting, as did new City Council liaison, Jay Maynard.