City Council forgives commercial rehab loan for Theede family – Crookston Times

City Council forgives commercial rehab loan for Theede family

Jess Bengtson Managing Editor

After a lengthy discussion, Crookston City Council agreed during their last meeting to forgive a commercial rehabilitation loan for the family of Craig Theede – a local chiropractor who passed away in April 2021 after a car accident. The $13,399 rehab loan would have been totally forgiven through the program after a five-year period had the business, Aspen Chiropractic, remained open but the agreement time period had only lapsed by two-and-a-half years.

Interim City Administrator and City Attorney Corky Reynolds told the Council that Theede and his widow have two children under the age of four and the building the business was in was to be sold, and closing was the next day. Katherine Theede had put in a request to the city to forgive the commercial rehab loan in its entirety so the building could be sold without a lien on the property.

Reynolds clarified that there were no status stipulations and City Finance Director Ryan Lindtwed said the Council had the say in whether they forgave the loan or not. At-Large City Council Member Wayne Melbye later suggested the Council put a stipulation for future commercial rehab loans and potentially add a life insurance policy requirement.

Ward 2’s Steve Erickson said he believed the Theede family had intentions of fulfilling the loan and At-Large Council Member Tom Vedbraaten echoed his thoughts saying the situation was “tragic, no doubt.” Ward 6’s Dylane Klatt said he believed Theede’s business would have been in Crookston another two-and-a-half years and the city probably wasn’t going to see the money as they would have fulfilled their agreement. Vedbraaten added that someone passing away versus a business just closing up was a different story.

Reynolds said if the Council decided not to forgive the commercial rehab loan it could “put a damper” or even stop the sale of the property as the Theede family wouldn’t be able to issue the satisfaction. Reynolds said earlier in the conversation that the buyer was planning for “a couple different offices” in the building and Ward 1’s Kristie Jerde said that would benefit the city. In the resolution it said the property will continue to house commercial entities conducting business within the City of Crookston.

“Whoever moves in there is getting an attractive building,” added Mayor Dale Stainbrook. “He (Craig) did a nice job on it.”

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