Credit OKd for Mazur (11/16/04)

The Portland City Council voted Monday to help a new Portland business move forward.

The council decided to establish a $580,000 line of credit through the city’s economic development income tax funds. This will allow president and CEO of Community Home Improvement Inc. Mike Mazur to get a $900,000 loan through First National Bank for his lumberyard and home improvement store.

Before council members voted, Jay County Development Corporation executive director Robert Quadrozzi said establishing the credit line would be the only way Mazur could be approved for the loan quickly.

The United States Department of Agriculture had guaranteed 80 percent of a loan for $1.6 million before the fiscal year ended in Sept. 30. Since Mazur hadn’t found a location for the business and the money hadn’t been used by that date, the funding had to be returned, Quadrozzi said.

Normally, before the USDA will guarantee a loan the bank has to approve the loan. If Mazur should fail to pay all of the borrowed money, the USDA will pay 80 percent of whatever he still owes.

Mazur was eager to move forward with the project and could have had to wait up to six months for USDA approval if the city hadn’t supplied the line of credit, Quadrozzi said. Once the USDA guarantees the 80 percent, the $580,000 will be returned to the city and Mazur’s seven- or eight-year loan will increase to the $6.1 million he had originally requested, said Quadrozzi.

The new business will be located in the vacant former Marsh store in a plaza on the east side of North Meridian Street across from Wal-Mart. Quadrozzi said the lease will be for one year, with the option to renew it. He added, Mazur would like the store to open about Dec. 1.

In other business, the council approved a five-year tax abatement request from Qualtech Tool & Engineering, 103 Performance Drive.

Quadrozzi said the business would like to purchase a new lathe for $168,836. The purchase would create two new jobs with salaries totaling $41,600.

He said the Portland Tax Abatement Advisory Committee did not meet because it had recommended approval of several abatement requests by the company in the past. It was discussed over the telephone, and all members said the abatement should be approved.

A tax abatement allows companies to pay taxes in increasing increments over several years, instead of paying the full amount each year.

Also Monday, board members:

•Approved on second reading to send all ordinances passed this year to American Legal Publishing Corporation to create new pages for the city’s code of ordinances book.

•Voted on first and second reading to move $5,000 from the city’s general fund into the demolition fund.

City clerk-treasurer Barbara Blackford said the city paid to have a house on East Main Street demolished earlier this year after it was destroyed by fire last September. When the property is sold, the city will be reimbursed, she said.

•Voted to allow Portland City Court clerk Jennifer Noble to join the city’s Public Employees Retirement Fund.

In October, the Portland Board of Works voted to change the city court clerk position from part time to full time.

•Approved that an updated phase one environmental study be done on the former hatchery building, which is located at 509 S. Wayne St., now owned by the city.

Portland Mayor Bruce Hosier said a study had been conducted about five years ago. Hosier said the assessment would be done at no cost to the city because grant money was available. The previous study was still valid but a new one should be done to, “clear hurdles for future developments,” Hosier said.[[In-content Ad]]