CLEARFIELD – The Glendale Industrial Development Authority will receive a zero-interest loan to develop a revolving loan fund for community improvements in Coalport and Irvona boroughs and Beccaria Township.
GIDA had asked the Clearfield County Industrial Development Authority for a $25,000 grant to fund the project, but the authority board opted to loan the money instead. Authority Member Nancy Micks cast the lone nay vote to provide a $12,500 five-year zero-interest loan.
Prior to the vote, Micks stated that she worried that providing money for GIDA might set a precedent. She said she was also concerned that GIDA was not using their own money to match CCIDA dollars. She noted that information from GIDA showed that storefront owners were also not expected to match the funds loaned to them through GIDA’s proposed program.
GIDA serves three municipalities in southern Clearfield County and two in Cambria County. The CCIDA dollars will only used to fund Clearfield County projects.
Cambria County does not have an industrial development authority.
Patricia Brennen, loan program director with the North Central Pennsylvania Regional Planning and Development Commission, reported that GIDA had been looking into creating a Main Street Program in that area of the county.
“They’ve investigated the Main Street Program, but it’s really not feasible with the size of the community,” she said.
As of Tuesday’s CCIDA meeting, the board reported that there was about $21,000 in the fund for grant monies.
Bill Williams, authority member, expressed displeasure with awarding “free money” to GIDA for the initiative. “They’re going to make money on it,” he said, noting the 4 percent interest rate GIDA plans to charge on loans granted to through the fund.
“They’re asking us to give them money so they can make money.”
GIDA has about $94,000 in their own coffers including certificates of deposit and checking accounts, the CCIDA reported.
The CCIDA approved the zero-interest loan on the condition that GIDA secures another $12,500, either from their own sources or from Cambria County.