Grant requests approved
Published Monday, December 1, 2003 3:20:47 PM Central Time
By JAN TUCKER
Globe Staff Writer
ONTONAGON -- The Ontonagon County Economic Development Corporation Monday agreed to recommend to the Ontonagon County Board approval of Revolving Loan Fund money for two projects.
SubTerra of White Pine
In a split 5-2 vote the EDC will recommend that the county approve an RLF loan of $80,000 and a grant of $20,000 at 5 percent interest to the underground growth center in the White Pine Mine operated by SubTerra.
According to Scott Grossenbach, manager of SubTerra, the funds would provide the company with the necessary capital to reach a point where it can approach the commercial lending and capital markets to conduct an expansion of the underground growth chamber. He noted that expansions are expected to occur in stages and over the next two years SubTerra plans to employ at least 10 individuals. Long-term plans foresee employment of over 400 people at the site, he said.
The Michigan Economic Development Corporation, in a letter to the EDC, said Ontonagon County should use its Community Development Block Grant which began the RLF, to provide the funds to SubTerra.
Discussion on the proposal centered on areas where the proposal by SubTerra does not comply with the RLF requirements. Those requirements are for immediate additional employment and personal guarantee.
The request was approved by the three-member Revolving Loan Fund Committee to be brought to the full board. Committee members Sue Preiss, Richard Miskovich and Harold Amos strongly endorsed the proposal, indicating they saw private material which cannot be shown at this time indicating a good potential for future employment and development at Sub Terra. Grossenbach said the clients, some of them pharmaceutical companies, have not given permission to discuss that business. Bussiere said that when companies are developing special products they want a secure property like the mine to grow them.
The committee noted that the Michigan EDC felt strongly enough about the potential of the project to recommend it to the EDC. EDC member Tom Poisson said the three people on the RLF committee "have the privilege of information and have recommended approval. From what I have seen and heard there is potential for growth here."
"On the basis of the potential for employees, I ask approval," Miskovich said. EDC members Hubert Lukkari and Fred Sliger voted no, adding that SubTerra should be required to meet the requirements of other proposals.
Members Preiss, Amos, Miskovich, Poisson and Duwayne Holtz voted yes. The Ontonagon County Board will consider the request at its Dec. 2 meeting.
Wuolo Creek Kennels
The EDC approved a loan of $118,000 to Tammy and Spencer Ward, who operate a large kennel in Bruce Crossing. The $344,000 project is constructing two buildings to house 330 breeding dogs. It will allow the company to sell in excess of 2,000 puppies each year. The Wards have contracts with pet stores in the city and plan to sell to families as well.
Presently the kennel has 160 dogs and has not held a dog over eight weeks. Tammy Ward said some newborn pups already have owners waiting for them.
Bussiere read four letters praising the operation of the kennel and the way the Wards handle themselves and the dogs, and the clean operation. "We have happy and healthy puppies and are hiring full-time and part-time employees, " the Wards said.
The EDC administrative secretary said the new business helps diversify the economy and bring others outside of the area awareness of the area.
"Our kennel will be something the county can be proud of and is family friendly," Ward said.
Members of the Ontonagon County Animal Protection group indicated they had seen the kennel and had no objections to the operation.
The vote was to approve the $118,000 loan with $34,000 for seven years and $84,000 for four years at 2.75 percent. The vote to submit the request to the Ontonagon County Board was unanimous.
More local news
Story found here