Loan approved

A local company will get some financial help with its efforts to rehabilitate a former industrial site.

Portland City Council on Monday approved a $309,372 partially forgivable economic development income tax (EDIT) loan for Fifer Services for its work on the former Sheller-Globe south property.

Travis Richards, executive director of Jay County Development Corporation, presented the loan request from Fifer Services. He explained that the loan would have an eight-year term. If the company reaches specified goals, including hiring additional employees, 75% of the loan would be forgiven.

The loan funding would be used predominantly for new walls, insulation and doors for the northernmost building on the site, which is planned to house a new sawmill. (Fifer has a future goal to manufacture furniture at the location as well.)

Richards noted that the city’s EDIT advisory committee recommended approving the request.

Council member Ron May, acknowledging that he did not attend a special council meeting at the Fifer Services property at 510 S. Bridge St. last month during which owner Chad Fifer provided a tour of the facilities and shared his plans, raised several questions. They included how many new employees would be added, how much money Fifer had put into the project himself, how much property tax money the property would generate and where the 75% forgiveness number came from.

Fifer responded that the number of new employees will depend on how big the company gets, but he said he plans to add 10 to 15 by the time it starts making its own furniture at the location.

He added that he sought a quote from a Fort Wayne company for the work Fifer Services has already done at the site. He said it came in at more than $900,000.

Addressing property taxes, Richards said that number is unclear as it will be based on the assessed value of the property as it is improved over time.

Fifer said he requested the 75% loan forgiveness because he is aware of some previous loans, including one for the antique mall and event center across the street, were provided with 100% forgiveness.

“It’s a huge project and we need as much help as we can get,” he said.

May said he was not comfortable at the 75% loan forgiveness option. He also referenced previous situations in which the city “got burned” in the past, including to XPLEX, Community Home Improvement and Geesaman Industries.

Council member Mike Aker agreed with May’s concern about the 75% loan forgiveness, saying a 25% payback is not enough. Council member Matt Goldsworthy said he was initially hesitant as well, but he noted that his concerns were mitigated because Fifer’s contract would also allow the city to continue to use the site for storage for three years.

Council president Kent McClung and fellow council member Dave Golden spoke in support of the project, with the former noting the decades that the property has sat idle.

“For me, it’s someone that’s taking pretty much a Brownfield site that we had and turning it into an asset,” said McClung. “We’ve spent almost $300,000 tearing building’s down in the city in the last year. …

“And I see what he’s done to the building. He’s got a lot of sweat equity in it. … This will help him with that one part of the building, but he’s also taking on the rest of it, and turn the site into something that’s not a liability for the city anymore.”

Council approved the loan request as presented on a 5-2 vote, with Ashley Hilfiker, Michele Brewster, McClung, Golden and Goldsworthy in favor. May and Aker dissented.

Also Monday, council passed its 2025 budget of $10.61 million on a second reading after May raised various questions. 

Before the vote on the budget, which was approved on a first reading last month, May expressed his opinion that all departments should review the numbers and look for reductions. He asked a few direct questions of Police Chief Dustin Mock regarding money budgeted for vehicle purchases and targeted funds for a parks study and for additional pickleball courts in the parks budget.

Mock reiterated his plan to have the police department replace vehicles in rotation in order.

“I think that’s the responsible thing to do is to have it in the budget and not come to you asking for it when we need it,” he said.

McClung added that he was reluctant to consider any cuts to the park board budget without talking to its members.

The budget — it includes $4.77 million in the general fund, up from $4.42 million; $1.39 million in the motor vehicle highway fund, up from $1.31 million; $1.3 million in the insurance surplus non-reverting fund (unchanged); and $569,420 in the park and recreation fund, up from $509,000 — passed unanimously, with May saying he was voting “reluctantly” in favor.

Council passed two ordinance amendments on a first reading, one that allows for dollars to be moved within like funds in designated sections of the budget and another that corrects a typographical error in the progressive discipline section regarding pay if an employee is dismissed because of a violation.

Both ordinance amendments will need to be approved on second reading before going into effect

In other business, council:

•Set residential trick-or-treat hours for 5 to 7:30 p.m. Thursday, Oct. 31.

•Approved a three-year tax abatement for Pioneer Equipment on $2 million in new equipment. The abatement is estimated to save the company $51,000 while generating $159,000 in property taxes.

•OK’d an additional appropriation of up to $25,000 for a mayor’s vehicle on a 6-1 vote with May dissenting. Purchase of a specific vehicle will be up to the city’s board of works.

•Approved the following street closures: Ship Street between Main and Walnut streets and Walnut Street between Commerce and Ship streets from 10 a.m. to 6 p.m. Saturday, Oct. 26, for an American Legion Post 211 trunk-or-treat and car show; and Ship Street between Arch and High Streets from 3:30 to 7:30 p.m. Thursday, Oct. 17, for Jay County Public Library’s Fall into Fun event.

•Heard thanks from Goldsworthy to emergency responders during the Sept. 22 tornado. Aker, Brewster, McClung, Golden and Westlake echoed those thoughts. McClung and Golden also thanked WPGW’s Rob Weaver for his on-air reports during the storm.

•Heard May complain about the “migrant situation,” saying one of the houses he owns was hit by a vehicle and pushed off its foundation. He also shared other stories about things he said he has been told have happened. “Portland’s got a problem,” he said. Golden later cautioned that specifying a certain group of people could be considered racial profiling and asked that council members be more respectful of people.

•Learned from Hilfiker that Pregnancy Care Center is holding a Ladies Night at 6 p.m. Thursday at Wheel and Spoke Event Center.

•Received updates on community projects following questions from Golden:

   —The U.S. 27 (Meridian Street) work — it includes sidewalk work, new traffic signals and paving — in Portland that was originally scheduled to be complete this month will stretch into November.

   —The Blaine Pike paving and multi-use path project is nearly complete. Clerk-treasurer Lori Phillips said issues with Americans with Disabilities Act ramps have been corrected and the project should close out soon.