FREDONIA - A Fredonia project was approved for a bit more than seed money Thursday from the Chautauqua County Industrial Development Agency.
The East Main Complex LLC was approved for a renovation loan of $650,000 for development at the former Fredonia Seed Co. located at 183 E. Main St. in the village.
Fredonia resident Daniel Sturniolo is the owner of the East Main Complex LLC.
Pictured is the East Main Complex LLC located at 183 E. Main St. in Fredonia. Located at the site of the former Fredonia Seed Company, East Main complex LLC was approved for a $650,000 loan at a recent Chautauqua County Industrial Development Agency meeting.
Photo by Matt Panebianco
Originally passed as a $600,000 loan, an amended resolution was unanimously approved during the morning meeting held at the SUNY Fredonia Incubator in Dunkirk. Carol Rasmussen, CCIDA project manager, went over the details before the vote.
"We've had a request from M&T Bank, which is the main bank, and the Sturniolo family, to increase our loan of $50,000, making it $650,000. We keep the same collateral, we would be second on the real estate," Rasmussen began. "This came to pass because of the payout statement for their CPC mortgage, which M&T is addressing, it was greater than expected. ... So that's the reason for the increase."
Rasmussen said things should be OK going forward.
"The total project now is $1,985,000 of equity. In 2012, $1.9 million was the assessed value of the property. With the improvement and the renovations they expect the property should go up, the assessment, to $2.015 million," she explained. "We will take second position and there's in effect, enough for us to take second position."
When asked if the proposed increase went through the loan committee, Rasmussen said it did.
"The loan committee had the same explanation and decided to recommend it to the board," she replied.
There were no other questions before the resolution passed 5-0.
According to the resolution, the CCIDA is listed as assignee and loss payee equal to the amount still owed on the loan under the insurance on all corporate assets. In addition, the loan is secured behind M&T with the assignment of rents and leases, Key-Man Life Insurance on Daniel Sturniolo and his personal guarantee.
After the meeting Rasmussen provided additional information on CCIDA's role in the project.
"Our money is being used for the renovation of the property, mainly landscaping and to make this a more attractive front, more green space," she stated. "They have lighting to do in their parking lots and they have some blacktop to do in their parking lots. They've hired a landscaper to do some green space up front and then there's going to be some more work inside concerning doors and windows.
"They have apartments on top, industrial in back and they also have commercial space, so it's a mix of everything. Our loan is mainly for the renovations on the first floor, not the apartments."
Richard Dixon, CCIDA chief financial officer, gave a report on the agency's finances at the halfway point of the year, saying there were not a lot of changes in the balance sheet.
"All in all I think we're in good shape with the cash," Dixon reported. "We do have some deals in the pipeline that we would hope to close by the end of the year to bring our fees in order. I think everything looks pretty good."
Dixon received no questions from the board and his report was approved unanimously.
The board then went into executive session to "discuss the financial and credit history of certain companies and potential acquisition of real property by the agency and/or personnel matters," according to Michael Metzger, chairman.
After the executive session the board reconvened and then adjourned. The next meeting is scheduled for 10 a.m. on Aug. 21 at CCIDA offices, 200 Harrison St. in Jamestown.