Alerus plans to pay back debt to the cityAlerus Center officials have told the Grand Forks City Council the center intends to repay its approximately $1 million debt to the city in annual payments.
By: Charley Haley, Grand Forks Herald
Alerus Center officials have told the Grand Forks City Council the center intends to repay its approximately $1 million debt to the city in annual payments.
The payments will be a minimum of 10 percent of the previous year’s total profit, according to information in the agenda packet for the council’s Tuesday meeting.
That payment is not recommended by Alerus Center officials if the event center’s balance dips below 25 percent of its budgeted annual expenses for the upcoming year.
The goal of this payment plan is to repay the center’s debt to the city while keeping the Alerus Center financially stable, officials said.
When the payment plan was brought to the council’s Finance/Development Committee Jan. 13, council members said they wanted the center’s debt repaid, but they didn’t want the repayment to put the Alerus Center at financial risk.
“We appreciate what they’re doing, but we don’t want to jeopardize their good work,” Council member Doug Christensen said.
Council member Terry Bjerke said he wants the debt repaid as soon as possible. “It’s taxpayer money, and we should get our money back,” he said.