As requested last month at the Wells City Council meeting, the owner of Singleteary Foods has been approved for a loan extension.
The council held a public hearing on April 22 before the regular meeting to discuss the request.
Chuck Pettipiece, of Pettipiece Associates, attended the public hearing to explain the situation regarding the extension of the loan issued to Steve Singleteary, owner of Singleteary foods.
There was some previous debate about whether or not the funds awarded to the food processing plant were a loan or a grant, which determines how they would have to proceed.
The money was granted from the state to the city. However, the money was then loaned to the business owner.
“Since this was a grant from the state to the city, the request for an extension required this public hearing,”?Pettipiece explains.
According to Pettipiece, Singleteary Foods would be allowed a number of extensions on the loan.
“However, he feels he could meet the job creation and payment deadline within the one-year amendment to the loan,”?he adds.
The extension would set the new deadline date as April 30, 2014. Therefore, the city would have to approve and return the amended loan agreement before April 30 of this year.
Singleteary Foods received $500,000 for start up from state-awarded funds. Those funds will then be repaid to the Wells Economic Development Authority (EDA).
The EDA?feels confident that this was a good investment in the community. Kim Sorenson, EDA?board member, was present at the public hearing.
“We have talked for years about tearing that building down,”?he says.
He explained to the council, the cost to the city to tear the building down would have been near $1 million. Now, with the work Singleteary Foods has invested to the site, the property value has increased.
“Now they have all the equipment in there,” he adds. “So if Singleteary doesn’t open it, it’s more likely someone else will.”
The council agreed and passed the resolution allowing the second extension to the loan given to Singleteary Foods.