Improvement money disputed in Niles

By SHELBY SCHROEDER

The corporation will not loan money until it sorts its finances.

NILES — Confusion over available funds prevented the Niles Community Improvement Corp. from fully funding two loan requests by growing businesses in the city.

At its first meeting in more than a month, questions arose about how much cash is available to grant two loans to inquiring companies. J.A. McMahon Inc. and Trumbull Foundry and Alloy Inc. requested loans totaling $195,000.

McMahon, a steel fabricator based in Niles, requested $150,000 to expand the east and west wings of its facility to accommodate the growth of its business. The company reported a $1.2 million increase in sales from 2006 to 2007. President John McMahon III said the improvements would allow the company to compete, as well as create 10 more jobs in the city.

Trumbull Foundry is seeking a supplemental loan for $45,000 from the corporation to fund the startup of their company, Trumbull Metal Specialties.

The company would be housed in the former Indalex building in Niles and carry out metal casting projects — adding as many as 15 jobs to the community within three years, according to loan officer Teresa McCleary.

One CIC member, however, disputed the amount of cash available. David Snyder, a certified public accountant and attendee, said the CIC had only $135,000 in cash available as of Aug. 31. The number conflicted with McCleary’s estimate of $304,079.78.

CIC President Matt Blair amended the motion to grant the two business their full loan requests, to a motion to loan J.A. McMahon “$150,000 or to the extent that funds are available.”

Then a motion was passed to withhold a decision to provide Trumbull Foundry’s loan request until the actual available fund amount is determined.

Blair requested that an accurate account of the available funds be made today. McCleary said if Snyder’s record of the corporation’s funds are correct, J.A. McMahon’s full loan could be granted by the end of October.

sschroeder@vindy.com