LAKEPORT — One member of the public spoke for and one person spoke against a business stabilization loan Tuesday before the Lakeport City Council voted 4-1 finding the application for Plaza Paint and Supplies meets the community benefit test.
Mayor Jim Irwin voted against the motion.
Plaza Paint and Supplies owners Kristen and Jason Soderquist requested a loan for $50,000.
Todd Falconer told the council he thinks there could be “far-reaching ramifications for the city if this money goes out and doesn”t come back.”
“Please don”t do this with my general fund money,” Falconer said.
Lakeport Planning Commissioner Marc Spillman gave a quick comment to the council.
“There”s an old saying, if you ignore your community it will go away,” Spillman said. “The same goes for the business community.”
Councilman Ron Bertsch asked if the loan committee approves the loan whether it would take away from other businesses applying for the program.
Redevelopment director Richard Knoll said there”s only one other loan pending and about $75,000 will be left in the pot.
“They”ve been here a while. They invested here. They”re part of the town,” city attorney Steve Brookes said. “They need some help.”
In 2009, the City Council approved the Business Stabilization Loan Program with a loan target size of $15,000 to $25,000 with a maximum amount of $50,000 based on a determination of business need and community benefit, Knoll said. The program aims to help local businesses with cash flow and pay off their bills to stay open.
The loan committee met Wednesday to determine business need, Knoll said. The committee also has the discretion to determine the amount of the loan.
The Kitchen Gallery received the first and only other business stabilization loan in March.
The council reconsidered a decision from the last meeting and voted 4-1 to send bids to local engineering firms for inspection services for the Vista Point Shopping Center. Councilman Roy Parmentier voted no.
“Before I thought we should hire someone locally,” Bertsch said. “I would like to see that done.”
The inspection report on the center is required for operation. If the inspection report finds the structure isn”t sound or the city doesn”t pay for the report, the center could be shut down. The owner of the shopping center would be required to pay the city back for the report.
Council members passed the preliminary budget for the fiscal year 2010-11. The final budget will come back before the council at a July meeting.
The council sitting as the Redevelopment Agency also agreed to approve disbursements to the affected local taxing agencies and the Redevelopment Low-Moderate Housing Fund 219.
Council members voted unanimously to approve a resolution declaring the intention to reimburse expenditures relating to water projects from the proceeds of tax-exempt obligations of the city.
Contact Katy Sweeny at kdsweeny@gmail.com or call her directly at 263-5636, ext. 37.
