JCIDA requests additional control

A disappearing photography business led board members of the Jefferson County Industrial Development Agency to ask for more controls on its microenterprise loan fund.

In November, the board approved a $26,570 loan to Carla J. and Brian J. Coones for Creative Touch Images, a photography studio and art gallery at 268 State St., Carthage.

But after paying two months worth of loan payments, JCIDA comptroller Lyle V. Eaton said he has not been able to find the owners and the storefront in Carthage is closed.

On Tuesday, the loan review committee asked for more information before writing the loan off as bad debt, but agreed to turn it over to attorney W. James Heary for collection.

"All of us felt she had a worthy business opportunity," CEO Donald C. Alexander said. "But when things like this happen, we have to evaluate how we can do things differently."

The committee asked to review the loan and collection policy for the microenterprise loans.

Part of the loan was for equipment costs, so member David J. Converse suggested taking serial numbers of proposed equipment purchases and reimbursing for the equipment.

The committee will discuss policy changes at its next meeting.

On Thursday, the full board approved collateral changes for the planned Pleasant Night Inn, West Carthage. The Economic Development Corporation of Carthage increased its loan from $60,000 to $150,000 and developer Jeffrey S. Shambo, Brantingham, increased his personal investment in the project from $455,000 to about $700,000.

The changes are a result of North Country Alliance funding $125,000 of the $225,000 request and Mr. Shambo increasing the total amount of the project from $3 million to nearly $3.4 million because of higher material costs.

Michelle L. Capone administers loans for the alliance through the Development Authority of the North Country. She said the primary reason for the reduced loan amount was lower availability of funds at the time the project was reviewed in April.

Committee member Urban C. Hirschey said, "Carthage has needed it. I think it's a no-brainer."

During the Thursday board meeting, JCIDA accepted a first-collateral position on furniture, fixtures and inventory and a third position on the mortgage after Community Bank, N.A., and the Small Business Administration.

The board also approved a sale-leaseback agreement for the hotel on Thursday.

For both of those votes, members Michelle D. Pfaff, who works at Community Bank, and Kent D. Burto, a member in the company selling the land for the hotel, recused themselves.

The board also approved its 2009-10 operating budget. The budget projects revenue of $1,820,093 and expenses of $1,309,163. It allocates $20,000 for development of a uniform tax-exempt policy for commercial wind developments in the county, for which $15,000 has been spent so far in this fiscal year. Like in the previous budget, the board set $100,000 aside for development at Watertown International Airport, Dexter.

The budget predicts fewer loan applications and fees.

The 2009-10 budget year begins Oct. 1.