An abbreviated session of the Staples Economic Development Authority (SEDA) on Dec. 22 included a spirited discussion of the idea of the SEDA getting involved in a micro-lending program.

The city’s economic development arm has a long history of a revolving loan program for industrial and commercial projects, most commonly as a gap financing tool. It however has stayed away from making smaller loans with little collateral.

Jerel Nelsen, the SEDA executive director, said he placed the idea on the agenda to gauge board members feelings. Micro lending would involve making smaller loans with shorter payment periods. Nelsen projected that a typical example would be a loan to a newer business to help the business meet short term capital needs.

During the short discussion, Nelsen noted that the risk would be more than the city has been used to. It might be similar to a pawn shop but with less collateral, he said.

Mayor Chris Etzler noted that the loans would be based more on trust and personal connections than on normal collateral such as land, buildings of vehicles.

Both Al Kolling and Stan Carlson voiced some apprehension over the idea. Carlson doubted that he could vote for it. “I just have this gut feeling we should not get into this,” Kolling said.

Nelsen explained that the Region 5 EDA board is looking at this idea and suggested that Lee Miller, the Region 5 economic development specialist, be asked to attend the next SEDA meeting to explain the need and how such a loan program might work.

Nelsen told the SEDA board that a broken water pipe at the vacant Carter Ringer building resulted in the entire floor being covered with water and then freezing. The problem apparently started with a window being broken, which caused one of the building’s fire safety sprinkler system’s pipes to break, flooding the floor before it was discovered.

The city has an interest in the building as it holds a mortgage on a now delinquent loan to Norbert Johnson, the owner and last operator of the sewing business once in the large structure on the city’s east end.

The SEDA members, who adjourned after about one hour because the board’s three city council members had to attend a special city council session at 6 p.m., also discussed a draft copy of a proposed employee survey. The survey is intended to find out how many local employees live in the area and if not, why do they choose to live elsewhere.

The survey, which has been drafted by Nelsen, Etzler and Tim Rice, would likely be first presented to employees of the Lakewood Health System and Staples Motley ISD 2170 school district. No final decision on the survey was made.

In other business, the SEDA board:

o APPROVED agreements with three different firms renewing their leases for space in the Staples Industrial Building. The leases are with Accura Tool and Engineering (Tom and Chris Dunrud); Stanley Widmer and Associates and Bill Paulson Jr. with his PCM Products, a custom rubber molding firm.

o HEARD Nelsen report on progress on forming a local Marketing Task Force.

o HEARD Nelsen report on his activities this past month, including work on the Highway 10 turnback project for 2010; the city’s wetland mitigation work on the southeast edge of the city, working with one business on a restructuring plan, and more work on the city’s broadband initiative .

Nelsen also reported delivering 26 Christmas poinsettias to various area machine shops and industries. He said it gave him a chance to visit with shop owners and managers about the status of their shops. He said while none are overly busy many are picking up orders and feeling optimistic about the coming year.