The Saint Peter City Council has signed off on a recommendation by the Economic Development Authority to subordinate the current mortgage for a growing business that is looking to expand.
In the process of securing a 500-thousand dollar loan from CCF Bank for a remodel, the request from St. Peter Food Co-op was approved by council members on Monday. It will be the second major renovation of the building along Highway 169, which underwent over 3.3-million dollars worth of improvements when the business relocated to the former Nielsen Chevrolet building in 2011. At that time, the council aided in financing the project with a 350-thousand dollar loan.
Community Development Director Russ Wille says a recent post-development remodeling appraisal of the Food Co-op was at 2.3-million dollars.
“There’s no additional EDA funds that are requested for the project. CCF Bank has consented to provide an additional 500-thousand dollar loan, and the Co-op then is able to bring an additional 80-thousand dollars in cash that they’ve accumulated to the project.”
The interior remodel will include an expansion of the deli department, which makes up approximately 30-percent of business.
“Given consumer trends, industry trends and influence and input of a paid consultant, the Food Co-op is proposing to undertake an interior remodeling to expand the deli and I even heard to include a burrito bar. The will increase the size of the produce department, while reducing the size of their bulk food department. They’ll be able to widen some aisles to make the shopping experience a little more convenient.”
The remodel will also include exterior improvements and a re-roofing.
When the Food Co-op moved from its former location in 2011 it employed 42 people, today the business has 78 employees, with a payroll over 1.2-million dollars a year.