While property taxes are still a struggle, he said Jacobsons' investments are starting to pay off.
Todd and Nicole Jacobson, owners of the Crookston Inn & Convention Center, are the recipients of a $25,000 loan from the Crookston Housing & Economic Development Authority (CHEDA) that will help them pay their property taxes due by the end of the year.
While on the surface that might sound like a discouraging development as far as the Crookston Inn’s finances go, the latest loan OK’ed for the Jacobsons is less than half the amount of the consecutive $60,000 loans approved over the past two years by the Crookston City Council through the City’s Intermediary Relending Program (IRP) revolving loan fund. Both of those loans were also earmarked toward the Jacobsons’ property tax bill.
CHEDA Executive Director Craig Hoiseth said the Jacobsons’ continuous efforts to upgrade their business since they bought it in 2013 in somewhat rough shape are starting to pay dividends.
“I talked to their primary lender and they were in favor of us doing this,” Hoiseth said. “They’ve been great payers (on previous financing) but unfortunately they haven’t been able to get their property taxes paid, and it’s a big chunk.”
The money the Jacobsons were investing in the business, combined with a property valuation jump that caused their annual property taxes to increase from $16,000 to $52,000, over the past few years have put the Jacobsons in a tough spot, Hoiseth said. The increase was not expected and, therefore, not budgeted for, he explained, adding that he continues to work with the Jacobsons and the Polk County Assessor’s office to see if they can get some property tax relief.
But, despite all that, the latest renovations at the Crookston Inn appear to be boosting the bottom line, Hoiseth said.
“Todd and Nicole are doing a great job,” he said. “The first three quarters of this year they have shown a profit, and it’s fantastic. There are a lot of positive changes in the building, if you’ve been out there.”
Hoiseth said the Jacobsons believe that if they can continue on their current positive pattern, they won’t need any financing to cover their property taxes next year.
“It’s very possible (they’ll ask for another loan next year),” Hoiseth said. “But I just want to compliment them for what they’ve done. They are providing a service to the community of Crookston that we kind of desperately need. It’s been a big turnaround there.”
The Jacobsons currently owe $17,392 on previous financing. The $25,000 will be added to that and it will be due in 2020. The interest rate is 4.5 percent.