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City approves $200,000 loan for CRM expansion

Lead Summary

Loan is part of proposed $2.5 million project
By Reed Anfinson
Publisher
Benson’s City Council approved a $200,000 loan to Custom Roto-Mold (CRM) as part of its proposed $2.5 million expansion. Half that loan could be forgivable over five years.
Funds from the two-part loan would go toward defraying the costs CRM will incur in moving its operations in the Sioux Falls area to Benson. Moving the rotational molding ovens and other equipment to Benson could create up to 50 new floor jobs and five management positions, Benson Economic Development Director Hillary Tweed told the city council Monday night.
The first half of city financing comes in the form of a $100,000 loan at 2.5 percent interest to be paid over 15 years.
The second half is a $100,000 forgivable loan over five years with that forgiveness beginning with the start of operations in the new facilities. If CRM maintains its operation of the ovens moved to Benson, then one-fifth of the principal and interest would be forgiven each year over the next five years. The forgiveness would come at the end of each operating year in the new facility.
Should the ovens not be operating, the unpaid portion of the forgivable loan would roll into the payable loan at 2.5 percent interest.
In addition to private financing, CRM is receiving $200,000 from the Upper Minnesota Valley Regional Development Commission to facilitate the move. Its funding has already been approved....
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