Glenville will soon have another resource in its economic development toolbox, as its Local Development Corporation prepares to start offering loans next year to new businesses.
Earlier this year, the town established the not-for-profit LDC to spur commercial growth as part of its 2012 Strategic Plan. The group will use $565,000 in U.S. Department of Housing and Urban Development funds from the Community Development Block Grant, which can only be used for economic development projects. LDC Chairman Jim Martin said two seats on the five-member board still need to be filled.
Without establishing the board, the town would be unable to use the HUD funding for local projects.
“If we did not do this, this community would have lost almost $600,000,” Town Supervisor Christopher Koetzle said. “(The board) stepping up and taking the time as volunteers to do this allows the community to have almost $600,000 invested in it.”
Martin gave a presentation on the organization’s progress at the Wednesday, Nov. 7, Glenville Town Board meeting. Members have been working to finish incorporation documents to submit to the state to register as a nonprofit and start an account with the state Comptroller’s Office.
The LDC is planned to offer different types of loans depending on the business, from smaller projects with less paperwork to larger loans with a more extensive review process. Loans would be offered to existing businesses seeking to expand, purchase equipment or upgrade infrastructure as well as new businesses trying to locate in the town.
Martin doesn’t envision the LDC’s role to be a one-shot deal, though.
“I want to be able to come into one of these meetings 10 years from and say the fund is capitalized at $2 million and we made three loans this year,” Martin said. “This is not a stagnant amount of money. If we do this right, administer this right, this can be a brilliant program.”
The Corporation is being formed in the wake of the state’s disapproval of having several different economic development agencies throughout the county. Rotterdam’s Industrial Development Agency was ordered disbanded in late 2011 because it held no outstanding bonds.
“We are well aware of the increased scrutiny that these organization are rightfully coming under from the Comptroller’s Office,” Martin said. “We are well aware of across the state where there have been instances of abuse.”
The goal of the group is to increase the commercial tax base of the town, which is much lower than in surrounding communities, and to attract new jobs.
“In Schenectady County the type of land uses that are bearing the burden of taxes are the residential taxpayers,” Martin said. “What we need to have happening in this county, in this town, we need industrial and commercial land uses … pulling their optimal weight.”
Besides the two open LDC Board of Directors seats, there are several committee positions open. Board members must be a town of village resident, but committee chairs can be non-residents. Committee members will participate in governance, loan review, or business development and recruitment.
Applications must be submitted electronically to Town Director of Operations James MacFarland at [email protected] by Friday, Nov. 30. Applications should include a cover letter and a personal resume. Interviews are planned to begin in December.
All positions are voluntary, with no compensation or reimbursement. Interested applicants may review the By-Laws and organizational documents to help determine their participation or type of position to seek.
“We cannot thank the (Town) Board enough for having the vision to do this,” Martin said. “This public money, this is taxpayer money, and we are very, very cognizant of that.”