Wednesday, July 7th, 2010
Revolving loan approved
Funds will go toward land buy at Grand Lake Industrial Park
By William Kincaid
CELINA - City council members on Tuesday approved the final reading of an ordinance to issue $100,232 to Rob Kraner from the city's revolving loan fund. The move will finance the purchase of 12.59 acres of city land in the Grand Lake Industrial Park.
At the special meeting, council members Bill Sell, June Scott, Mike Sovinski, Angie King and Myron Buxton voted yes, while Jeff Larmore abstained and Ed Jeffries cast the lone dissenting vote.
Council members already approved the land sale to Kraner to construct Grand Lake Warehousing, a 60,000 square-foot facility.
On Tuesday night, Celina Planning and Community Development Director Kent Bryan reiterated that Kraner will pay the same when interest is taken into account compared to the city's initial $10,000-an-acre option at zero percent interest.
The 20-year loan at 2.41 percent interest mandates a total payment of $125,290, even if Kraner pays it early.
According to Bryan, the revolving loan sum administered to Kraner will be returned and used to pay the city's debt on the Grand Lake Industrial Park.
In January 2009, the city refinanced its debt on the park through a 15-year-bond at 4.75 percent interest, according to city auditor Emily Stewart. The principal of that bond is about $445,144.
Kraner's annual interest payments will replenish the city's revolving loan fund, Bryan said.
On Tuesday night, council members also passed the second reading of an ordinance to advertise and accept bids for improvements to the Grand Lake Industrial Park. It was passed as an emergency measure, with all council members voting yes, except Jeffries.
A $200,000 Ohio Department of Development (ODOD) roadwork grant obtained by Mercer County will be used by the city to extend and realign Havemann Road into the industrial park for use by Grand Lake Warehousing and Versa Pak, which is expanding its business.
The project is estimated at $400,000 and the city must match the $200,000 grant through in-kind labor and funds from the Staeger Road Tax Increment Financing (TIF) fund, according to Bryan.
Bryan said the city's goal is not to exceed taking more than $150,000 from the Staeger Road TIF for the project.