Geesaman grant is confirmed

The owner of a business planning an expansion in Portland is getting some cash to buy new equipment.

Jay County Development Corporation executive director Bill Bradley confirmed Monday night that Portland has been awarded a $900,000 Community Development Block Grant for Geesaman Industries, which will be located in the former Sheller-Globe building on South Bridge Street. The city will administer the grant, which was awarded by the Office of Community and Rural Affairs through a federal disaster relief fund.

Also Monday, Portland City Council members voted to lend $150,000 in Portland Economic Development Income Tax (EDIT) funds to Steve Geesaman, owner of the business. Geesaman plans to repay the loan when he receives the $900,000 grant.

Bradley said this morning that the EDIT loan will be used for the purchase of new equipment for the business, after telling a city EDIT advisory committee and the city council Monday night that the loan would be used to pay moving expenses for Geesaman Industries.

Bradley reversed course this morning and said that the loan would be used only to buy equipment.

The city likely will not get the grant money for three or four months, Bradley said.

Geesaman requested the EDIT funds to purchase equipment for the business. Once the grant money is received, $150,000 of it will used to repay the city.

The Portland Economic Development Income Tax Advisory Committee met just before the council meeting and voted to recommend that the council approve the EDIT loan.

Anne Bell, from the Indiana Office of Community and Rural Affairs, said this morning that the grant specifies that the $900,000 is to be used for the "equipment purchase, freight, shipping, etc."

When questioned this morning about using grant funds to repay the EDIT loan for moving expenses, Bradley first explained that OCRA had given permission for the grant to be used for that purpose.

But in a phone call later in the morning, Bradley said he was mistaken and that the EDIT funds will be used to purchase equipment, and not for expenses related to the expansion to Portland from the company's current location in Pittsville, Wis.

Bradley said this morning that Geesaman plans to purchase up to $3 million in equipment.

Geesaman, who arrived at the council meeting after the loan request had already been approved, said, "I appreciate you guys approving it." He said he hopes to have the business up and running in 60 to 90 days.

As part of the grant, Geesaman must employ at least 50 within 18 months of receiving the grant funds. If the doesn't meet that guideline, the city will have to repay $18,000 to the Indiana Office of Community and Rural Affairs for each employee he is short.

Geesaman previously announced that he would employ 50 to 100 at the stainless steel polishing plant.

Also Monday, council members:

•Voted to rezone a property located at 630 N. Western Ave. to neighborhood business from residential.

The property, which is owned by Mel Smitley, will be rezoned with the conditions that it reverts back to being zoned as residential in three years or if it is sold before that time. Smitley plans to put a temporary office for his auctioneering/real estate business in the house there.

Council members previously rejected the rezoning request because they felt it should have some conditions, such as reverting back to residential when it is sold.

•Met the city's new code enforcement officer, Richard Williams.

He replaced Shane Mann, who was the city's first code enforcement officer. Mann left for another job about three months ago, Portland Police Chief Bob Sours said after the meeting.

Williams has been a reserve police officer for three years and has worked for Jay County Community Corrections for four years.[[In-content Ad]]