Panel OKs $160,000 for bonds

The state's minority bonding program is to help local companies long-term.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- Resolution is coming to the nearly two-year struggle to supply performance bonds to minority-owned city companies.
Council's community development committee handled one element of the two-pronged issue Wednesday night.
The committee approved legislation providing $160,000 of the city's 2004-05 federal funding for minority bonds. The money would be set aside to provide bonds for two contracts that are in play now. The full council is to vote on the item next week.
Businesses must provide the bonds as a guarantee. Proceeds from the bonds are used to finish a job should a business fail to complete its contract.
James & amp; Weaver Inc., a female-owned office furniture business, needs a $125,000 bond to provide items to the New Castle school system. Underwood & amp; Associates is a black-owned subcontractor that needs a $35,000 bond to wire the heating and cooling systems in two new city schools.
The move will solve the bonding program's immediate problems, said William M. Carter, executive director of Youngstown Area Development Corp., which handles the city's minority business program.
Earlier request
Carter had asked the city earlier to set aside $350,000 for minority bonds, primarily for future contracts related to the nearly $200 million school construction project.
A long-term solution is expected to solidify next week with the state's help, Carter said.
The Ohio Department of Development is expected to extend the state's minority bonding program to city companies, he said.
Local minority companies will be eligible for bonds through the state ranging from $100,000 to $1 million, he said. He will talk with the state next week about a process to get local minority companies qualified for state bonding.
Other aid
The community development committee also approved doling out $338,000 to 14 agencies for a variety of uses.
One of them is $70,000 for the Youngstown Metropolitan Housing Authority, to fulfill the city's previous commitment to the $20 million Hope VI project. The project is to transform YMHA housing in a section of the North Side.
A few council members questioned whether Richard Atkinson, R-3rd, the committee chairman, should vote on the item. He is married to Eugenia C. Atkinson, YMHA's executive director.
Law Director John McNally IV said there is no conflict of interest. The money is for the HOPE VI program and the Atkinsons wouldn't benefit personally from the money, McNally said.
rgsmith@vindy.com