Council to consider economic development

An economic development department could assist companies that want to move to Lorain or expand in the city, said a city councilman who wants to boost help for business.

Meanwhile, Lorain City Council also will consider using a lending firm to oversee the city’s supply of money to help small businesses to grow in Lorain.

On March 27, Lorain City Council will consider a proposal to create a new economic development director position in City Hall.

“It is now time to create this vital team to turn the corner on economic development in Lorain while creating our future,” said Councilman-at-Large Mitch Fallis, who proposed the plan.

The director would head a department funded by Lorain’s general fund, Fallis. The general fund money would allow the most latitude for pursuing economic development opportunities, he said.

The city also could add experts such as an urban planner and a real estate staffer within the city Department of Building, Housing and Planning. Those staff members would work with the new director, according to Fallis’ proposal.

City Council also should create an economic development committee to review legislation and other matters relating to business retention and attraction, Fallis said.

He also suggested creating a new community improvement corporation to borrow money, make loans, buy and hold land, serve as an agent for grants and other duties that could help businesses.

The meeting is scheduled for 6 p.m. March 27 at City Hall, 200 W. Erie Ave.

In another program that will deal with business development, Lorain City Council will consider an agreement for the Economic & Community Development Institute to oversee small business development loans.

Lorain’s Department of Building, Housing & Planning in January 2016 put on hold all revolving loan fund activities.

The revolving loan fund previously was administered by the Lorain Development Corp., a nonprofit corporation that worked within City Hall to assist businesses.

The Economic & Community Development Institute was established in 1985 and now is the third largest U.S. Small Business Administration “intermediary micro-lender” in the nation, according to city legislation.

Since 2004, ECDI has provided small business owners with more than $33 million in startup or expansion funding and has made 1,600 loans to help businesses. Those companies have created or retained more than 5,900

The city plan to work with ECDI could involve more than $3.48 million. The city project budget has more than $2.97 million for loan capital; $45,000 would be set aside as loan loss reserves and administrative expenses over three years.

That agency comes recommended by the federal Department of Housing and Urban Development, said Mayor Chase Ritenauer. It appears ECDI is “somebody we really want to get on board because I think they can really help us,” Ritenauer said.

“They serve as an asset to those people that want to start a small business,” the mayor said. “They are an ally on that front, in terms of helping people start small businesses.”

Council’s Federal Programs Committee will consider that plan in April.