Dunkirk gives loan

DUNKIRK — A pair of developers will received a $25,000 loan from the city to open two restaurants in the former Todd Opera House, pending a development agreement.

Dunkirk City Council approved the loan during its meeting Monday, the second in a row that centered around the redevelopment of the landmark, while also agreeing to submit a request for a $75,000 appropriation with the Indiana Department of Local Government Finance that would go to the developers in the form of a forgivable loan.

Council also approved a tax abatement for SDP Manufacturing and heard an update on the Barbier Street sewer project.

The deal on the table going in to Monday evening’s meeting between developers Bill Brown, Ray Willey, the City of Dunkirk and the Dunkirk Industrial Development Corporation (DIDC), would have provided the developers a forgivable loan of $150,000, paid out in a lump sum of $50,000 initially with the remainder paid each month for construction and development invoices from contractors over the period of one year. DIDC and the city of Dunkirk would each contribute $75,000. The loan would be forgiven and made a grant after three years, provided the restaurants were opened and stipulations in the development agreement were met.

But Dunkirk City Council members Tom Johnson, Jesse Bivens, Lisa Street, Bryan Jessup and Jack Robbins realized that the fund they intended to use to pay for their $75,000 portion, an economic development fund, couldn’t be used for grants, but only for revolving loans. Bivens expressed concern with approving the deal with the developers without knowing where the $75,000 would come from.

“One thing I don’t want to do is move forward if we don’t know what we’re doing,” Bivens said. He suggested the city hold off on approving the deal until council was able to identify which funds would be eligible for administering the grant.

Mayor Gene Ritter said he didn’t want to sink the project by not being able to find the money.

“I really don’t want this becoming about money because it’s ok for us to spend $16,000 extra on a police vehicle,” Ritter said. “We need these guys in town.”

“You’re preaching to the choir,” Bryan Jessup said, expressing his support for the project but stressing caution with the city’s finances. “But I think we need to make sure we can get that additional appropriation … If we don’t do that we’re not moving forward with anything.

“I found out two and half weeks ago about this … This is moving at the speed of government, I’m sorry, but it is … We want to do this, but we’ve got to move forward with something, and that’s getting that additional appropriation paperwork to see what the state says.”

Council unanimously approved a decision to allow the city clerk-treasurer, Tina Elliot, to prepare the appropriation request for DLGF.

Council then voted 3-2, with Bivens and Robbins dissenting, to approve a $25,000 loan, allowing Willey and Brown to begin work on the building and giving city officials time to pull appropriate the $75,000 from the city’s different funds. It is expected to be a 10-year, 3-percent interest rate loan, with a 180 day interest free period at the start. City attorney Wes Schemenaur said he would draw up the loan agreement and add conditions that the developers show proof of state building permits (or clarifications), bank loan and finalize the development agreement.

Brown indicated that work on the Todd Opera House, starting with floor repairs, could begin as early as next week.

Bill Bradley, executive director of Jay County Development Corporation, said the board of Dunkirk Industrial Development Corporation had expressed that it would likely follow the lead of city officials on whether the deal goes through or not.

Elliot said she will return to council with the appropriation proposal at its April 10 meeting, and then it would be forwarded to DLGF for its approval.

Council also heard a tax abatement proposal from Bradley Stan Pitman of SDP Manufacturing. Pitman explained that the business is planning to add a $450,000 expansion onto its existing building, creating one new job adding 20,000 square feet for storage of additional inventory. Council voted to forward the abatement on the expansion to the city’s abatement advisory board. If approved, it would save SDP $53,000 over a 10 year period.

Mitch Hansel of Fleis-Vandenbrink, updated council on the work to add a sock in the city’s sewer line underneath Barbier Street. He said the engineering firm is considering using a new UV lining, which may be more durable than the traditional cured-in-place pipe. Council will open bids for the work at its April 10 meeting.

In other business, council:

•Approved $6,198.60 to go toward replacement of all the city’s reflective signs, including stop signs, all yellow signs, no parking and no truck signs. Indiana Department of Transportation will pay 90 percent of the cost, or $55,787.40.

•Approved two $250 donations — one to West Jay Community Center for its summer day camp and one to Jay Community Center for its summer 5K circuit.

•Signed an agreement to purchase two parcels of land near the city’s water tower from Shumaker Apartments LLC for $3,000.

•Heard from Bivens that there are 112 homes left for the flood survey.

•Approved a $50 tampering fee and a $35 repair fee for the disassembly of a city water meter at 224 E. Ohio St.

•Approved a $1,280 service fee for maintenance on the Dunkirk Fire Department’s compressed air fill station.

•Approved claims totaling $322,829.40.