Federated Rural Electric in Jackson assisted the Hi-Lo Club in Lakefield Revolving Loan Fund check in the amount of $159,582.
The restaurant underwent a renovation recently under new owners James and Tresa Hussong. In addition to adding an upstairs bar and remodeling the restaurant, the Hussongs changed from the onsite septic system to a sewer connection to the Lakefield city line.
Federated and the Hi-Lo Club signed the 10-year loan paperwork on Friday. The Hi-Lo Club also provided matching funds with a loan from the Southwest Initiative Foundation in Hutchinson and the $100,000 from the Jackson County Revolving Loan Fund.
As funds are repaid to Federated, they can be loaned to other organizations.
The Hi-Lo Club has been in existence for more than 75 years.
“The restaurant opened in 1945 and over the years added a liquor license in 1988 and catering shortly thereafter,” Tresa said. “We purchased the business in 2021 when it closed due to the pandemic and owners’ health. We remodeled the upstairs with a ‘Rat Pack’ décor dating back to the 1950s supper club, added a bar upstairs and reopened Dec. 31, 2022.
“Our restaurant features many of the same foods from the past, such as steak, fish, lobster and pastas, along with local businesses’ food, such as cheesecake, butcher shop and mixed greens.”
An upgrade of handling wastewater was necessary.
“State licensing also required us to upgrade the site’s handling of wastewater,” Jim added. “We previously had a septic system that was more than 20 years old. Connecting to the City of Lakefield’s sewer lines was more affordable than a new septic system. Plus, this way we no longer have ongoing maintenance or inspections. This loan package helped make it more affordable.”
“Federated initially applied for the zero-interest loan and then charges up to one-percent handling to the organizations,” stated Scott Reimer, Federated’s general manager. “As these organizations pay back their loans, this money goes into a revolving loan fund to assist other organizations for economic development or community facilities.” The recipient also pays for the loan’s closing costs and one percent interest.
Since 1992, Federated has provided economic development dollars totaling $4.463 million.
Federated’s revolving loan started in 2009 with a loan from the United States Department of Agriculture (USDA) for $244,000 that financed a Ceylon fire truck and Tenhassen Township Hall.
In 2016, Federated secured additional USDA revolving loan funds and added a matching 20 percent totaling $421,515 toward new Heron Lake and Round Lake fire trucks.
Since then, Okabena used the revolving loan funds for its fire department brush fire truck, payloader and shop building. Federated also assisted the Fox Lake Conservation League to buy the former Alliant power plant land to create a park in 2021.
Also upgrading their septic systems thanks to the fund were Round Lake Winery in 2021 and Bergen Meats in 2022.
Federated is a Touchstone Energy Cooperative serving 6,900 members in Jackson and Martin Counties.