YOUNGSTOWN HUD loan would help minority contractors
Residents deserve jobs in school and arena construction, a councilman says.
By PETER H. MILLIKEN
VINDICATOR STAFF WRITER
YOUNGSTOWN -- City officials will explore applying for a $300,000 U.S. Department of Housing and Urban Development loan to enable the city to help minority and female contractors provide performance bonds.
Payment of such performance bonds, which are refunded upon satisfactory completion of the job, would enable minority and female contractors to obtain work on projects such as the $182.5 million, six-year city schools construction and renovation project and the proposed downtown convocation center, explained Jay Williams, Community Development Agency director.
As suggested by William Carter, city human relations director, Williams said he'd look into obtaining the loan, which would allow the city to borrow against future Community Development Block Grants. Councilman James E. Fortune Sr., D-6th, said he'd discuss the matter with U.S. Rep. Tim Ryan of Niles, D-17th, and try to obtain the congressman's help.
Quotable
"I'm worrying about trying to meet the requirements that we told the school board that we would do," Fortune said. "We're also committed to the convocation center. And it would be a shame for us to have [millions] floating through this city and nobody in the city gets a job."
The board of education has committed the schools construction project to 20 percent minority, 20 percent female and 50 percent city resident participation in the work.
Fortune suggested the HUD loan might be a means of allowing $200,000 that recently became available in CDA money to be spent for housing repairs and various social service agency programs, instead of performance bonds.
The additional $200,000 comes from refinancing of some of the city's long-term debt at a lower interest rate and from a debt service payment from the Mahoning Valley Economic Development Corp., Williams explained.
Williams said $70,000 from the $200,000 would be needed to fund the housing repair program, which pays for home repairs for low-income people. The discussion occurred during a Friday meeting of Council's CDA committee.
Concern
Williams expressed concern about the city's incurring an additional $300,000 debt, which he said might be in the form of a 10-year loan at 4 percent to 6 percent interest.
"That's something that we will need to look at very closely, and we will make council aware of the implications of borrowing additional money. I'm not saying it can't be done, but I think it's something we need to be very cautious of," Williams said.