The Staples Economic Development Authority (SEDA) approved one action and tabled a second related to the former Windmill Floral building at their Aug. 24 meeting.

SEDA director Jerel Nelsen reported that Ken Hales of GMDL Properties, Inc., was putting together financing to purchase the building at 128 4th St. NE, the former Windmill Floral building.

Hales also owns the building at 215 4th St. NE which houses the Farmers Insurance Group offices and the Staples Auto License Bureau as well as some apartments. A year ago he received an Awning and Facade loan for that building through money the SEDA had with a Small Cities Development Grant. That loan was secured with a mortgage on the property.

In order to loan Hales the money to purchase the Windmill Floral building, the bank asked for a first priority mortgage on the building at 215 4th St. NE. That means the SEDA and the City of Staples have to move to second and third priority, respectively.

The action was approved contingent upon the bank approving the mortgage on the 215 4th St. NE building and that he would provide the additional security of a mortgage to the SEDA on the Windmill Floral building. Stan Carlson was the only dissenting vote.

The Staples City Council also approved the agreement at their meeting a couple of hours later that same night, again with Carlson voting no.

The second part of Hales’ request was for a $15,000 Awning and Facade loan to make improvements to the Windmill Floral building.

Nelsen had just received the plans and estimates for the work Hales was proposing. That included 16 windows, three entry doors and two overhead doors at the back of the building.

Carlson and Chris Etzler both expressed concern about the scope of the work. Carlson felt that banks would loan money for window and door improvments. The SEDA dollars, he felt, were for appearance.

“I’d like him (Hales) to explain how this will be a visually attractive building, an improvement to downtown,” Etzler said, adding that the Awning and Facade loans were to “help you make it look good.”

“Aesthetics are a big part of why we’re involved with this,” agreed Carlson.

Action was tabled until the SEDA’s next meeting when Hales could attend.

In other business the SEDA:

o HEARD that a grant for funding for the North South Corridor including an overpass was submitted. Nelsen said they should hear something about the status by the end of September. If it is approved, construction could start as early as spring 2013.

In a related issue, Nelsen reported that the contract with a company to begin acquiring the right of way for the corridor was expected to be on the agenda of the city council’s first meeting in September.

o WERE INFORMED that improvements were in progress at the industrial building. One unit was nearly done, but materials to complete the job were not made right. When the correct materials are received the job can be finished.