MCG seeks $150,000

loan from city fund

By RON LARSEN

Journal Staff Writer

NEW ULM -- The City Council agreed Tuesday to hold a public hearing at its next meeting on a request by MCG, Inc. of New Ulm for a $150,000 loan from the city's revolving loan fund.

The electric-motors manufacturer is the latest firm to approach the city for help in refinancing its operations. The firm is seeking the loan as part of a $540,000 financing package that it hopes to have put together by Dec. 31.

In recommending approval of the loan, City Manager Brian Gramentz said the firm has had four loans from the city, and each of them was paid off.

However, Councilor Clark Tuttle called for a risk analysis anyway because "it's not enough to say they've paid loans off previously."

City Attorney Hugh Nierengarten suggested that any such loan should carry with it a jobs development clause.

John McManus, representing MCG, Inc., said the firm is on the verge of returning to profitability after three consecutive years of losses.

"We have about $3 million-plus business that we're going after, but we need this $540,000 package to get it done."

The council directed its staff to come up with an agreement that the council can review as a part of a public hearing on the matter at its next meeting.

The council did, however, approve a resolution supporting MCG's financing request submitted to Southern Minnesota Initiative Foundation's partnership with the State of Minnesota's Challenge Grant Loan Program.

MCG is seeking a $100,000 bank loan, $140,000 from the Initiative Fund, as well as a $150,000 from owner Brett Reese to complete the financing package.

Putting Green

The council also heard a progress report on the Putting Green Environmental Adventure Park from board member Roger Ryberg. He told the councilors that Putting Green already has raised $400,000 of the $1.4 million needed for construction and start-up costs of the 18-hole environmental education golf course and learning center.

Ryberg said the project is being designed for developing $300,000 in annual revenues, and the first-year operating budget for the park is designed to break even. He also showed councilors brochures the organization will be handing out as it launches its local canvassing effort Dec. 13.

ACH ja

Tim Knaak and Brian Tohal, representing the New Ulm Chamber of Commerce, briefed councilors on developments resulting from ACH ja(2), the Chamber's latest community-wide project.

"ACH which stands for Activating Community Horizons is an effort in which we try to determine, 'Are there any commonalties that we can look at?' The result has been that it has had several spin-offs," Knaak said.

"One of those is housing, another is what can be done in promoting speciality retailing, and then there's the Mayor's favorite, finding a user-friendly method of protecting the historic aspects of the downtown," Tohal explained.

Knaak said a town meeting is planned tentatively for Jan. 17 to explain ACH ja(2) to the community.

In other council action, councilors reviewed a conceptual architectural drawing for the new concession/restroom facility in Mueller Park. The building is expected to cost $165,000 and will be funded by the New Ulm Baseball Association.