Development agreement OK'd

City council approved the funding.

Now the development agreement is in place as well.

Portland Board of Works on Tuesday approved a development agreement with Chad Fifer for an economic development income tax (EDIT) loan to help with improvements at the former Sheller-Globe south property.

Last week, Portland City Council approved a $309,372 partially forgivable EDIT loan for Fifer for improvements to the property at 510 S. Bridge St. He plans for his company, Fifer Services, to install a sawmill in the north building on the property. The loan funds will be used to install new walls, doors and insulation.

Fifer, who completed the purchase of the property from the city early this year, said he hopes to rent the remainder of the property to other businesses and in the future would like to manufacture furniture at the site as well.

The loan agreement the board of works addressed Tuesday calls for 75% forgiveness if Fifer meets certain criteria, including completing construction and hiring at least one new employee within one year and being fully operational within three years. He will also need to make regular reports to the city and has agreed to allow the city to continue using 6,400 square feet of one of the buildings for equipment storage for three years.

The loan has an eight-year term, with no interest or payments for the first three years. Fifer will then have five years to pay back the loan.

Board of works members Jerry Leonhard, Steve McIntosh and Mayor Jeff Westlake unanimously approved the agreement.

Also Monday, the board approved a $14,704 contract with IWM Consulting of Fort Wayne for environmental work related to the Sheller-Globe north property. The wrk includes utility clearance, delineation of wells and groundwater sampling.

The board also approved the hiring of Mandy Ellsworth as a police department dispatcher.