City considers giving Eagles Club a break

Published 8:07 am Tuesday, October 5, 2010

City Council agreed Monday evening to give the Eagles Club a break on paying off the rest of its $60,000 loan until December 2011.

The loan, granted in 2006,  has a current balance of $35,750, and the Eagles are asking for payment suspension through December 2011 to aid them in paying off delinquent taxes.

The Eagles moved to 107 11th St. NE in 2006, and the club started having difficulties paying its property taxes in 2008.

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Along with yearly property tax totals of more than $25,000, the club was also affected by the struggling economy.

Council member Dick Pacholl said in the City Council work session Monday that he is in favor of the suspension.

“I think the Eagles is an asset to the city,” Pacholl said. “Let’s give them the opportunity to get out of this.”

In a memo to the Mayor and City Council, City Administrator Jim Hurm said the County Board appears to be open to having the penalties and interest forgiven on the loan if the Eagles can achieve its goal of paying off delinquent taxes.

The County has also approved a reclassification of the Eagles’ taxes, which will reduce the Eagles taxes in 2012, allowing the club to begin payments on the city loan again that year.

City Council will vote on the matter at its Oct. 18 meeting.