Apr 10, 2008 3:34 pm US/Central
Flood Recovery Efforts In Rushford Hit Snag
RUSHFORD, Minn. (AP) ―
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The state's Legislative Auditor has told the city that two $500,000 business recovery loans approved by the City Council violate rules of a flood relief package approved by the Legislature last September. (File)
CBS4
Some of the flood recovery efforts in the southeastern Minnesota town of Rushford have hit a snag.
The state's Legislative Auditor has told the city that two $500,000 business recovery loans approved by the City Council violate rules of a relief package approved by the Legislature last September.
That's because one of the businesses wasn't damaged in the flood, while the other didn't exist at the time. The loans were to farm equipment maker Connaughty Industries and startup Rushford Nanotech.
Mayor Les Ladewig says the loans were meant to stimulate new development in the community, and city officials believed they were following the rules.
Both businesses have been directed to apply instead to the Minnesota Department of Employment and Economic Development. Ladewig says another $800,000 in loans are on hold an in jeopardy until the city gets a formal ruling.
(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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