Commissioners eye new downtown business with revolving loan funding
Downtown Winamac could soon be seeing a new restaurant in town as the Pulaski County Commissioners approved to loan money for the project on Monday.
During a regular meeting, Pulaski County Community Development Commission Executive Director Nathan P. Origer presented a revolving fund loan to the commissioners. Origer said Sheila Hazemi has successfully made it through the first step of the application process.
Hazemi said she is interested in establishing a fine dining restaurant on West Main Street. She has worked in her family business for about 15 years. She would like to open the business sometime in May.
“I sat in the initial meeting with the finance board and I think that I related to Larry (Brady) that she has a heart in it and I think that we need some businesses here in town. I would 100 percent grant this,” Young said.
County attorney Kevin Tankersley pointed out that there will be very little collateral in this loan. Hazemi said the money will be used to purchase stoves, ovens, freezers and a craft table.
Tankersley said if the money is used in “fixtures” then those items become part of the real estate. Hazemi is renting the space, so in turn any improvements made to the building would belong to the landlord.
“Collateral was the biggest concern, I think, of the discussion. All the members of the committee were cognizant of that,” Origer said. “The restaurant business is always a bit of a higher risk than most other start ups.”
Before the application was presented to the commissioners it was presented to the revolving loan fund board that is made up of two bankers, one CDC member and two elected officials.
Origer said the committee took into consideration that the landlord is reasonable with his rent, compared to some of the other asking prices he has seen in Winamac.
“He is really interested in getting a tenant and has been a lot more flexible,” Origer said.
The vote to approve Hazemi’s application was split, according to Origer. He said the CDC member pushed the application forward.
“Even those who voted ‘no’ were not opposed to it, they just had understandable concerns about the risks given that the collateral will be in personal property and not real property,” Origer said.
Hazemi requested about $20,000, which would include upgrades to the interior of the building and appliances. Origer said he is confident in presenting it to the commissioners. The loan is for five years at a 3-percent interest rate.
Paperwork will need to be completed as the next step of the revolving loan funding.
In other business:
• Emergency Management Agency Director Larry Hoover requested the commissioners’ approval to accept an annual grant that covers about 50 percent of Hoover’s salary. The funding is based on job performance. The request was approved.
• Conference requests made by Hoover were also approved.
• A board of finance meeting was held with the commissioners and county treasurer Lynn Wilder. During the meeting, members of the board approved the minutes from the Feb. 17 meeting and also discussed an investment policy. Wilder presented the policy to the board during a previous meeting and said that having a policy is strongly recommended by the state. Tankersley reviewed the policy and questioned if the risk of investing would create better returns. Wilder said at this time the county investments are certificates of deposit. Board members approved the investment policy. Wilder also presented the board with a review of two cash management system bids that were accepted by the board during the Feb. 17 meeting. Wilder suggested that the board approve the bid from First National Bank as the cash management system because of a higher return. Her suggestion was approved.
• Willie DeGroot of DeGroot Technology presented a proposed plan to the commissioners in regards to upgrading the Internet bandwidth. He said the Indiana Office of Technology is requiring a larger connection. Commissioners approved for DeGroot to move forward with a network switch and do a fiber-optic upgrade. DeGroot hopes that after the initial cost that the county will save money on monthly costs.
• Commissioners approved an official bond for Mark W. Boer of the Pulaski Memorial Hospital.
• A lease agreement with the copier company the county contracts with was approved. Several departments recently received upgrades of copiers in hopes of saving the county money.
• The Pulaski County Medical Service Billing Policy was approved.
• Conference requests from the auditor’s office, commissioner Larry Brady, and the sheriff’s office were approved.
• Commissioners approved to resign a rezoning request that was submitted to them last month. The property in question is north of Winamac.
• Commissioners approved the block hours for DeGroot Technology.
• Auditor Shelia Garling submitted a claim to the commissioners that she had concerns about. She said according to the policy handbook, the county will not pay for tips and will not pay more than the daily food allowance. The claim was presented last year but they denied it. It was then presented to Garling again. She brought it to the attention of the commissioners, who approved to pay the amount of the food allowance. That does not include any extra cost or the tip.
• Payroll and claims were approved.
• Minutes from the regular meeting on Feb. 2 and Feb. 17 and minutes from the executives sessions on Feb. 9 and Feb. 18 were approved.
• During the public comment of the meeting Larry Rausch said he appreciated that the commissioners approved to pay the county home employees two-week severance pay. “I have a concern for them — what the closing has done for them out there.” He is aware that the council must approve the request. He would like to see them change the severance pay to four weeks. Tankersley said the county may not be able to pay the severance because the county doesn’t pay for work that isn’t done. The issues will need to be addressed by the state board of accounts.