July 23, 2014 at 2:10 p.m.
Council gives loan 2nd OK (07/18/06)
Portland City Council
By By RACHELLE HAUGHN-
A letter to the editor and opposition from a council member didn’t stop a loan request.
Members of the Portland City Council voted Monday night to loan $125,000 now, and $125,000 in six months in economic development income tax funds to Community Home Improvement president and chief executive officer Mike Mazur.
Before the council voted, however, one council member questioned the loan request and touched on some issues raised in a letter published last week in The Commercial Review.
Councilman Jim Sanders asked if EDIT loans are made typically to just new businesses, or if established businesses also would be eligible for loans.
Bob Quadrozzi, chairman of the Portland Economic Development Income Tax Advisory Committee, said CHI was a relatively new business when it first requested a loan in the spring of 2005. Existing businesses also could apply for EDIT loans to be used for inventory, improvements, etc., he said.
Sanders asked if an older business would have a chance at an EDIT loan.
Quadrozzi said existing business are eligible for EDIT loans, but must apply to receive such a loan.
He then said Sanders must be referring to a letter recently published in The CR which said only new businesses are given EDIT loans.
“There’s very few facts to that letter to the editor,” Quadrozzi said. The letter was submitted by several local residents.
The loan request was approved by a 5-1 margin. Sanders cast the lone dissenting vote. Council president Glen Bryant abstained from voting because he is a CHI employee.
Sanders said he voted against the loan request because CHI is not a new business, and if Mazur wanted the money he should have gotten it last June.
The loan was recommended for approval by the Portland EDIT Advisory Committee in a meeting held before Monday’s council meeting.
Mazur will have 36 months to repay the loan at 1 point above the prime lending interest rate, currently 8 percent.
The new loan agreement states that if he desires to do so, Mazur can request $125,000 more in six months without getting approval from the board or the city council. After the meeting, Mazur said he plans to do so.
Mazur plans to use the funds for inventory and day-to-day business expenses. CHI, 1605 N. Meridian St., opened in December of 2004.
In June of 2005, council members voted to loan Mazur $250,000 in EDIT funds. However, Mazur never requested payment of the funds until recently. The new loan agreement states that if he desires to do so, Mazur can request $125,000 more in six months.
After the meeting, Mazur said his original business plan determined he would need the EDIT money in June of last year. However, he later discovered that wasn’t the case.[[In-content Ad]]
Members of the Portland City Council voted Monday night to loan $125,000 now, and $125,000 in six months in economic development income tax funds to Community Home Improvement president and chief executive officer Mike Mazur.
Before the council voted, however, one council member questioned the loan request and touched on some issues raised in a letter published last week in The Commercial Review.
Councilman Jim Sanders asked if EDIT loans are made typically to just new businesses, or if established businesses also would be eligible for loans.
Bob Quadrozzi, chairman of the Portland Economic Development Income Tax Advisory Committee, said CHI was a relatively new business when it first requested a loan in the spring of 2005. Existing businesses also could apply for EDIT loans to be used for inventory, improvements, etc., he said.
Sanders asked if an older business would have a chance at an EDIT loan.
Quadrozzi said existing business are eligible for EDIT loans, but must apply to receive such a loan.
He then said Sanders must be referring to a letter recently published in The CR which said only new businesses are given EDIT loans.
“There’s very few facts to that letter to the editor,” Quadrozzi said. The letter was submitted by several local residents.
The loan request was approved by a 5-1 margin. Sanders cast the lone dissenting vote. Council president Glen Bryant abstained from voting because he is a CHI employee.
Sanders said he voted against the loan request because CHI is not a new business, and if Mazur wanted the money he should have gotten it last June.
The loan was recommended for approval by the Portland EDIT Advisory Committee in a meeting held before Monday’s council meeting.
Mazur will have 36 months to repay the loan at 1 point above the prime lending interest rate, currently 8 percent.
The new loan agreement states that if he desires to do so, Mazur can request $125,000 more in six months without getting approval from the board or the city council. After the meeting, Mazur said he plans to do so.
Mazur plans to use the funds for inventory and day-to-day business expenses. CHI, 1605 N. Meridian St., opened in December of 2004.
In June of 2005, council members voted to loan Mazur $250,000 in EDIT funds. However, Mazur never requested payment of the funds until recently. The new loan agreement states that if he desires to do so, Mazur can request $125,000 more in six months.
After the meeting, Mazur said his original business plan determined he would need the EDIT money in June of last year. However, he later discovered that wasn’t the case.[[In-content Ad]]
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