72-04 Martindale Electric - Forgivable Loan

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ORDINANCE NO: 72-04 PLACED ON 1ST READING & REFERRED TO THE FINANCE COMMITTEE 6/21/04. PLACED ON 2ND READING 7/6/04. BY: C· D D D orrlgan, emro. ever, Imn. FitzGerald~ Madigan. Seelie. AN ORDINANCE authorizing the Mayor or his designee to enter into an agreement with The Martindale Electric Company located at 1365 Hird Avenue, Lakewood Ohio 44107, for participation in the Lakewood Business Investment Program (BIP) of the Economic Development Fund (EDF) for a five (5) year forgivable loan in an amount of Fifteen Thousand Dollars ($15,000.00). WHEREAS, as an authorized use of the City of Lakewood's entitlement allocation of federal Community Development Block Grant dollars, the EDF was established and approved by Lakewood City Council on December 2, 1996 in order to promote business investment and redevelopment in Lakewood for the purpose of supporting Lakewood's competitiveness and attractiveness as a location for new businesses and the expansion of existing businesses; and WHEREAS, the BIP was established and approved by Lakewood City Council on June 2, 1997 as a means for implementing the EDF in order to provide needed and appropriate assistance and support to companies investing in Lakewood that would foster redevelopment efforts to increase jobs, generate new tax revenue and provide for physical improvements in Lakewood; and WHEREAS, The Martindale Electric Company has applied for a loan under the Brp in order to assist with the purchase of the machinery and equipment assets of the Smith Group, Incorporated for a product line. WHEREAS, this application by The Martindale Electric Company meets and exceeds the General Assistance Guidelines of the BIP; and WHEREAS, the Economic Development Committee convened on June 16, 2004 and, reviewed, and U/íanimously approved recommendation of the BIP application by The Martindale Electtlc Company; and WHEREAS, an Agreement pursuant to Section II - Basic Criteria of the BIP General Assistance Guidelines will be executed by The Martindale Electric Company wherein The Martindaie Electric Company agœes to retain thirty eight (38) full-time jobs and to the initial job creation of one (1) full-time job and further, in accordance with such Agreement, The Martindale Electric Company is prepared to undertake the project and to keep the business in Lakewood for five (5) years; and WHEREAS, in order to enter into loan agreements under the BIP with The Martindale Electric Company, Lakewood City Councii must grant authority for the City to enter into such agreements; and WHEREAS, this Council by a vote of at least five (5) members eiected hereto determines that this ordinance is an emergency measure, and that this ordinance shall take effect at the earliest date possible as set forth in ARTICLE III, SECTIONS 10 and 13 of the SECOND AMENDED CHARTER OF THE CITY OF LAKEWOOD, and that immediate action is necessary to provide for the preservation of the public health, safety and welfare and fOr the reason that financial assistance provided under the EDF is an investment in the City of Lakewood which promotes business redevelopment, generates jobs, increases tax revenues and provides for physical improvements thereby stabilizing the community and improving the quality of life within the City. NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF LAKEWOOD, STATE OF OHIO: