Project Delays Force St. Cloud EDA to Reconsider Main Street Economic Revitalization Grant for Daniel Building

(KNSI) – The St. Cloud Economic Development Authority was told by staff at Tuesday’s meeting to prepare for the possibility of another grant round for the Main Street Economic Revitalization program.

One of the projects supported by the board last August is experiencing delays. The EDA heard from realtor Marty Czech, who represents the Wirth Center for the Performing Arts, as it tries to purchase the Daniel Building. He says the structure of the deal with the building’s owner has changed, keeping the agreement from closing. “The original purchase was going to have seller financing, which would be a contract for deed, and they’ve changed the terms now, where the buyer is going to be obtaining outside financing.”

Even with the hiccup, Czech believes the agreement is nearly complete. “From talking to the buyer, he has everything set up with the lender. He has all the assurances from the lender that they are ready to go and that they just need the appraisal as the final piece.”

The Main Street Economic Revitalization program mandates that all money has to be spent by June. The applicant pays for everything up front and then can be reimbursed for eligible expenses, up to 30%, on the back end. If invoices are not submitted by the deadline, the Minnesota Department of Employment and Economic Development reallocates state funds to another city.

Since a project receiving the grants must be completed by June, the EDA has to step in if it has any doubt whether they’ll be finished in time, and must do so in advance to allow for a different applicant to meet the original deadline.

The EDA has decided if the Wirth Center has not closed on the Daniel Building by its February 3rd meeting, the $199,000 will be reopened to applicants for 30 days. The Daniel Building is located at the intersection of Courthouse Square and 7th Avenue North.

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