Council re-appropriates $1.3 million due to coronavirus effects

Avon City Council is preparing to weather the effects of the economic downturn from the novel coronavirus pandemic.

On May 11, Council voted for a net reduction of $1,303,940 in delaying some 2020 infrastructure projects and shifting funding in order to meet its financial obligations, including the potential implications of revenue declines from the Lake Erie Crushers.

Avon is planning ahead with $150,000 in transfers to the General Obligation Bond Retirement Fund for debt service obligations on Sprenger

Stadium if Blue Dog Baseball LLC is unable to pay its rent obligations, said Finance Director Bill Logan.

Blue Dog Baseball, which owns the Lake Erie Crushers, currently pays the city $250,000 annually in rent.

Logan said the city uses those payments to pay on their debt toward the stadium.

“That is revenue we are more than likely not going to see this year from the team,” he said. “If they don’t play baseball, then we’re probably going to see one, maybe two months of rent, but probably not more than that.”

Logan added that Crushers co-owner Tom Kramig has indicated to the city he would pay May rent.

“After that, it’s really dependent on if he’s got a season or not,” Logan said. “We have to pay debt service at the end of May on all the outstanding debt.

“Generally, we would pay a share out of the $50,000 that we would’ve received in May.”

The city also budgeted

$600,000 to replace the field turf at Sprenger Stadium following the Crusher’s season.

Logan noted Avon could use that money budgeted if the team can’t pay its rent.

Councilman Bob Butkowski said with the understanding Blue Dog Baseball could receive federal assistance to offset losses, Kramig has a responsibility to meet those terms.

“My concern is that this is a way he is usurping the rent that is due, understanding that there’s external conditions going on,” Butkowski said. “But if he’s getting federal funding to offset his rents and payroll, he has a fiduciary responsibility to the residents of Avon to fulfill that rent.”

Avon Mayor Bryan Jensen said Blue Dog Baseball has not given any indications that non-payment of rent is a possibility, but Council would be kept updated should any changes occur.

Council also gave a $150,000 boost to the city’s Fire Department Fund to address expected revenue declines and a projected 25 percent decline in EMS revenue.

The city also finalized a $100,000 fund to assist Avon’s small businesses through the Lorain County COVID-19 Small Business Emergency Relief Grant Program.

Developed by the Lorain County Chamber of Commerce and Lorain County Community College’s Small Business Development Center, the program will enable businesses to apply for grants of up to $2,500.

Council delays infrastructure projects

In looking forward to 2021, Council delayed infrastructure projects, including the funding of design and engineering work for the resurfacing of French Creek Road ($1.2 million), intersection improvements and Detroit Road and Nagel Road ($225,000) and the Center Road widening project ($80,000).

The reductions total $1,505,000 for those three projects.

On April 27, Logan said the city is anticipating income tax revenue declines of around 7 or 8 percent, and while Avon remains in a strong fiscal position, it is preparing for the worst.