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$70,000 DL loan will help Legion Campground

The American Legion Campground is expanding.

The Detroit Lakes Development Authority took the first step toward approving a $70,000 loan to the American Legion Club. The Legion leases and runs the campground, which the city owns.

The total project is estimated at $90,000, which would add 27 sites. The five-year loan would be borrowed at 6 percent.

Community Development Director Larry Remmen said it's not a typical loan because the money would be used to improve city-owned land.

Development Authority members agreed it was a safe loan because the property isn't bankable -- as in it can't be sold since the city owns it -- and the Legion is offering $46,000 in CDs against the note.

Because of the size of the loan, the Development Authority is required to hold a public hearing. With the date of June 13 as the next authority meeting, Legion representative Don Schattschneider said the Legion would deal with the delay if it has to.

"Like everyone else, we want to get started as soon as possible," he said. He added that dirt work has already begun.

Authority member Mark Hagen suggested Schattschneider and the Legion could go ahead with the project "at your own risk" with the assumption the public hearing wouldn't bring any opposition.

City Administrator Rich Grabow agreed there wasn't much risk.

To speed the process along, the Development Authority set the public hearing for 4:15 p.m. May 30.

This morning (Wednesday) a memo was sent from city hall saying the public hearing wasn't necessary after all.

"The Business Subsidy Law has been revised and loans of less the 75,000 are exempt from the hearing requirement," it read.