Commission guarantees development loan
Published 12:00 am Wednesday, May 16, 2001
In an effort to attract companies as well as to increase jobs in the area, the Butler County Industrial Development Authority (BCIDA) has been working hard to open an industrial park in Greenville. At the meeting of the Butler County Commission on Monday, Malloy
Chandler, chairman of the Butler County Industrial Development Authority, announced that the $1.7 million grant to help fund the project has recently been approved by the regional office of the Economic Development
Authority (EDA), a division of Housing and Urban Development.
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It has now been sent
to Washington, D.C., where it is awaiting approval.
"I have yet to see a grant approved at the regional level and then not approved in Washington," stated Chandler.
The grant will cover 70 percent of the project, with the remaining 30 percent coming from local funds. One condition on the EDA grant is that 30 percent of the cost of the project
must come from local funds.
A second condition of the grant is that no leans can be outstanding on the property. In order for the land to be lean-free, "Pioneer Electric bought the land and have deeded it to the BCIDA," said Chandler
In return, the BCIDA has requested the Butler County Commission
approve a loan from People's Bank for $650,000 to repay Pioneer Electric. At that point, Butler County will then own the land and will repay the bank.
In addition, a loan for $350,000 must also be taken from People's Bank to cover the local funds that are required to match the EDA grant.
To fund the 50,000 sq. ft. spec building, the BCIDA also was able to receive a zero-interest loan for $600,000 from Pioneer Electric. This amount must also be borrowed from People's Bank in order to clear the debt with Pioneer.
The County Commission approved a loan in the amount of $1.6 million. on Monday.