Serving Gogebic, Iron and Ontonagon Counties
Serving Gogebic, Iron and Ontonagon Counties
SCOTT ROEHM, left, a local representative for Northern Initiatives, Ontonagon EDC President Sue Preiss, and Dale Cook, Regional Loan Manager for Ontonagon County at Northern Initiatives, look at information about the need for there to be some activity in loaning out revolving loan funds. In there is no activity, the money goes back to the state.
ONTONAGON - "Use it or lose it" was the message the Ontonagon County Economic Development Corporation received Wednesday, concerning the Ontonagon Revolving Loan Funds.
Dale Cook, Regional Loan Manages for Northern Initiatives, which manager all the Western U.P. RLF funds, stressed the revolving loan fund board has received a letter from the state concerning a little known clause in the revolving loan fund regulations called " continuing activity."
The letter, Cook said, indicates if Ontonagon County does not have a project request for funds in the pipeline, by Jan. 1, it could lose its $593,499, which would go into the state's general fund.
Cook emphasized that the county does not have to loan all the money out in that time and even a small loan of $10,000 to $20,000 would constitute "continuing activity."
He challenged the EDC and others to go out and find someone who wants funds for a new or expanded business which will hire at least one new person on its staff. He added that sometimes areas keep looking for the big company that hires hundreds of people but several small businesses can benefit a community.
Scott Roehm represents Northern Initiatives in the Ontonagon area and said he is willing to go to any part of the county to discuss a loan proposal.
The loan must go to a for-profit corporation and the one new employee cannot include the owner. He said the revolving loan monies are gap financing and Northern Initiatives or banks can provide the additional funds a new or expanded business needs.
"You need to take this as a mission," Cook said, adding that "No idea is too small."
"Make it your mission to find such a proposed business," he said.
Those interested in finding out more about the program can contact Scott Roehm at home or at Harbor Town Auto.
The EDC's part-time secretary Beth Allen submitted her resignation to the board. Allen said she will be working full time in the office of the county treasurer. Several of the EDC directors said they would cover the phones and office on a limited basis. The board thanked Allen for her service to the EDC, noting that she stuck with them through reduced funds, took pay and time cuts and helped the corporation in many ways.
Following a short closed session, the EDC directors voted to take legal action and file a civil lawsuit to collect all sums owed to the EDC by Brambleberry, Inc., in Ewen. The business obtained a RLF loan several years ago.
EDC member David Jaris discussed tourism and steps he felt should be taken to increase tourism into the county. He felt the county should ask for millage which could be used to encourage people to sponsor events to bring traffic into the county. His suggestions included giving millage to the chamber of commerce to use for advertising, sponsoring key events that have succeeded in the past and provide large prizes which would draw outside people to events.
Jaris also cited what he called a need for more good restaurants in the area.
Skip Schulz, in his discussion of economic development, said the county should identify those spin-off businesses that would be needed if the copper mine is opened in 2017 and be ready to contact them when the announced date of opening a mine is close.
