Revel Brewing, LLC will receive a loan from the Park Rapids Economic Development Authority’s Revolving Loan Fund.

In a late addition to its agenda on Tuesday, the city council approved a $75,000 revolving loan requested by Revel Brewing to provide working capital and purchase equipment.

Council member Erika Randall, who serves on the revolving loan fund committee, said the committee recommended approving the loan with a five-year balloon, a 10-year amortization and 5 percent interest and a $796 monthly payment.

The owners of the new brew pub on Main Ave. have not previously received revolving loan funding, she said.

Randall said the agreement is to advance $50,000 to the business immediately, and to hold the remaining $25,000 until spring 2021 pending review of the brew pub’s status.

“We want to make sure that … we’re helping them succeed and helping them with their business plan,” she said.

According to the resolution presented to the council, the loan will be secured by third mortgages on the brew pub and the owners’ home, a subordinate lien on all business assets, a first-lien interest on equipment being purchased and the owners’ personal guarantees.

Council member Tom Conway moved to approve the loan, and the motion passed unanimously.

Grant applications

The city council agreed to accept a $26,000 grant from the Minnesota Department of Natural Resources, providing 100-percent funding for an urban forestry project to slow the spread of emerald ash borer (EAB) and other tree pests, and to collaborate on the project.

City Planner Andrew Mack said the DNR has identified Park Rapids for a “model communities target project” and is the only city for which the program will not require a local match. The DNR’s grant is funded through the U.S. Department of Agriculture Forest Service.

According to the resolution presented to the council, the grant covers the hiring of a contractor to do a tree inventory, create an EAB management plan for ash trees on public land, remove unhealthy public trees and replace them with more diverse species, treat healthy ash with an injectable pesticide and plant trees on public land to foster diversity and resilience in the city’s tree canopy.

Randall moved to approve the resolution, and the motion passed unanimously.

The council also authorized an application by the city’s parks board for a $5,000 grant from Park Rapids Area Community Fund grant application.

Parks board member Liz Smith said the grant, in addition to other funding sources, would allow the city to purchase artist Al Bellevue’s “Ant-Venture” sculpture.

She described “Ant-Venture” as a part of the 2018 Sculpture Walk in Red Bridge Park that was popular, especially with children, who liked to crawl inside it.

Smith said when she approached Bellevue, he was listing the artwork for sale at $12,000, but he agreed to sell it to the city for $6,000. She said the sculpture will be permanently displayed at Deane Park.

Council member Liz Stone moved to authorize the grant application, and the motion passed without dissent.

In a consent item, the council authorized the police department to submit a grant application to the Walmart Foundation.

Materials in the agenda packet included Thomsen’s letter authorizing the grant application but

did not specify the amount or purpose of the grant. Thomsen hinted that Police Chief Jeff Appel was approached by Walmart personnel who encouraged him to apply for a grant.

Asked for comment, Appel said, “We have yet to apply for a grant or decide what program or funding to pursue. The letter was a required process by Walmart for us to qualify.”