NORTH MANKATO — North Mankato will recoup the major portion of a loan made to the Boerboom family in an attempt to salvage the former Ray’s Market grocery store on Belgrade Avenue.
The Port Authority made the $80,000 loan in 2000 and payments were made until late 2008, after which the loan went into default. The Port Authority earlier this year voted to write off the loan but also directed the city attorney to continue pursuing a repayment plan.
Kevin Boerboom has agreed to pay $61,334 — the amount of the remaining loan balance when payments stopped in 2008. Interest that would have compounded since then was waived.
Boerboom will pay $5,000 on the loan this year and next and then make a monthly payment of $250 through 2023.
The agreement was approved by the Port Authority at its Wednesday meeting.