Winnebago Economic Development Authority (EDA) officials are taking another step to collect a loan of nearly $58,000.
City Council members last November hired the law firm Olson & Burns, P.C., of Minot, N.D., for $4,000 to begin foreclosure proceedings to gain ownership of land in that state used as collateral.
At a recent EDA meeting, City Administrator Chris Ziegler told board members he has spoken with City Attorney David Frundt and got the latest update.
“Some more forms need to be filled out, then it’s ours and it can be listed for sale,” he says. “I’ve been told that a family member may be interested in buying it.”
Ziegler is referring to some 75 acres that Nancy Delmaire used to secure a $60,000 to open Fredonia & Luella’s Seafood Restaurant at the former Tasty Treatz site on South Main Street.
Ziegler says about 30 acres can be used to grow crops and another 40 acres for hay. He says a Realtor has appraised the property at $62,000.
Balance of the Fredonia loan is $57,279 and the last payment was made last July.
Ziegler says money obtained from the EDA was for operating expenses and any improvements needed to the building.
Delmaire and her business partner Glenn Abbott also obtained a loan from First Financial Bank in Winnebago.
Board member Doug Hill, who works as a loan officer at First Financial, says the building and house on the property are being sold for $70,000.
On another matter, Zierke Built Mfg., Inc., may have a buyer for one of its buildings.
Ziegler says he recently spoke with Zierke vice president Kyle Zierke and was told the company’s building on Highway 169 may be sold.
Hill says he has heard the new owner is interested in using the building to store trucks.
In the past, the Zierkes have said they will be asking $490,000 for the main building on Highway 109 or $600,000 for both.
In 2013, the fair market value for the ZBM property was estimated at $680,000.