The Ogdensburg Growth Fund Development Corp. agreed Wednesday to lend $60,000 to Plattsburgh developer Gilbert J. Jones for upgrades to his downtown cinema.
The citys lending agency voted 6-0-1 to approve a five-year loan at no interest for two years and 2 percent annually for three years after that. Board member Scott M. Wright abstained because his familys company, Pepsi-Cola Ogdensburg Bottlers, does business with the cinema.
The money is for the purchase of digital projection equipment for Mr. Joness twin-screen Ogdensburg Cinema I and II theaters at 119 Ford St., which he closed last summer.
Mayor William D. Nelson, the Growth Funds chairman, said he is looking forward to Mr. Jones reopening the citys only movie theater.
The city is looking forward to working with him, Mr. Nelson said.
Mr. Jones wasnt present at the meeting or available for comment Wednesday.
Earlier this year, he asked the Growth Fund for a $100,000 loan, but the fund only approved him for $60,000. Later, Mr. Jones modified his request, telling the Growth Fund that he might consider $60,000 at 0 percent interest for four years.
The Growth Fund based its offer on its bylaws-allowed formula of $15,000 for every 35-hour-a-week, full-time equivalency job created. Mr. Jones originally calculated for 12 full- and part-time jobs over three years with positions including manager, film booker, projectionists, concession workers and a custodial worker. He later amended the number to seven full-time employees. The Growth Fund board concluded that his plans would accommodate only four full-time equivalency positions.
Mr. Jones bought the 9,000-square-foot, 448-seat cinema in 1980 and has since spent $85,000 on a new roof and ventilation system. He also installed a $73,000 marquee with assistance from a $50,000 state grant and just spent $42,000 on additional renovations.
Voting with Mr. Nelson in favor of the loan were City Manager John M. Pinkerton, Samuel J. LaMacchia, Lori A. Smithers, Dallas Sutton and Gary Hammond.