Economic Development Authority approves $72,065 loan to cover sewer charge for indoor play facility

The Economic Development Authority on May 4 approved a $72,065 loan to cover a Met Council sewer availability charge, or SAC, for Hyper Kids, a proposed indoor play facility at 10985 Ulysses Street.

Ruth Tucker, the city’s economic development specialist, told the board the SAC was unexpectedly high under the Met Council’s methodology and ‘‘was calculated at $72,065,’’ a sum that would jeopardize the project’s financing. She recommended a SAC loan for that amount at 3% interest over a three-year term, to be funded through the EDA Strategic Initiative Fund and repaid in full with interest.

Tucker said staff had secured written consent from the property owner allowing the SAC obligation to be assessed to the parcel in the event of a default, which she described as a risk-mitigation measure. She also noted the project would activate a long-vacant tenant space — roughly 22,000 square feet in the rear of a former Best Buy building that was subdivided after the retailer closed — and aligned with the city’s strategic goal of strengthening the commercial and retail sector.

After the presentation, the motion to approve the SAC loan was moved by council member Newland and seconded by Commissioner Robertson. Commissioner Robertson offered a brief comment in support, saying she was ‘‘glad we could find a path to help you get to that opening date sooner and make all your numbers work.’’ President Sanders then called the vote; those present said ‘‘Aye’’ and the motion prevailed.

The loan will be administered from the EDA Strategic Initiative Fund and repaid over three years at 3% interest, according to Tucker’s presentation. Beyond the loan terms, Tucker emphasized that the SAC calculation came from the Met Council’s methodology and that reassessment to the property in default was authorized by the owner’s written consent.

No further item was taken up; the authority adjourned following brief, informal remarks about the project.

Actions at a glance: The authority approved a SAC loan of $72,065 to Hyper Kids, at 3% interest for three years; motion moved by Newland and seconded by Robertson. Specific vote tallies by member name were not provided in the transcript.