Bike firm gets loan for parts

Portland is lending a hand to a high-performance bicycle company.
The Portland City Council voted Monday to loan AeroCat High Performance Bicycles $50,000 in Portland Economic Development Income Tax funds. The money will help the company cut costs by buying bicycle components in bulk directly from manufacturers.
Tim Poole, who owns the bicycle assembly company with his brother, Dave Poole, said many of the 24 parts needed for a bike currently are purchased from a supplier, rather than directly from the manufacturer.
He said buying more costly items, such as tires,  directly will save the company money because it eliminates the middleman. He estimated that a set of tires for one bicycle would cost $20 less.
The EDIT loan will be for five years. During the first year, the company will not pay any interest or principal on the loan. During the following four years, AeroCat will pay the principal and 4.25 percent in interest.
Bill Bradley, executive director of Jay County Development Corporation, said the loan will be personally guaranteed by the Pooles.
This means that the brothers must guarantee they have enough money to pay back the loan. If they fail to pay it, the city could sue them, Bradley said after the meeting.
Prior to the council meeting, the Portland EDIT Advisory Committee met and voted to recommend that the council approve the request. The Pooles will not be asking for money from the Jay County EDIT Advisory Committee, Bradley said this morning.
The company was founded in 2007. Sales have doubled every year, and the company will have built about 200 this year by Dec. 31. Prices for bikes range from $1,000 to $5,000.
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Currently, four companies have EDIT loans or grants through the city. Buffalo Wings and Rings was awarded a $120,000 grant in April of 2009. The restaurant is required to remain open for three years to avoid repayment of the funds.
This year, MyFarms, Fort Recovery Industries and Fort Recovery Construction and Equipment have been awarded Portland EDIT grants that must be re-paid if the companies do not meet employment and other guarantees in the agreements. The total amount awarded between those three companies is $237,500.
Also Monday, council members:
•Learned that the elimination of one recycling collection day in the city will go into effect on Jan. 1.
Best Way Disposal asked for Monday’s collection day to be eliminated to cut the company’s costs. The Portland Board of Works granted the request Thursday.
Street and park department superintendent Jeff Harker told council members that recycling will be collected west of Meridian Street on Wednesdays, and east of Meridian Street on Fridays.
•Voted to erect stop signs at Creagor Avenue and Lafayette Street.
The signs are being added because of increased traffic in the area, due to the opening of Katelynn Place apartments.
•Voted to transfer a $3,950 grant from the Department of Homeland Security into the fire department’s equipment fund.
Fire chief Matt Aker said the department purchased 10 pagers at a cost of $395 each using department funds, then was reimbursed through the grant. The pagers are needed because the entire country is switching to a narrow band frequency in 2012.[[In-content Ad]]