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GAEDC sees need to boost coffers

Loans, mini-grants wipe out reserves

The Greater Altoona Economic Development Corp.’s success in helping fund the rebirth of downtown is hindering its ability to continue.

Over the years, and especially within the last 12 months, GAEDC has committed more than $1.2 million in “facade loans,” along with $72,000 in “mini-grants” — thus wiping out its mini-grant reserve and leaving only $27,000 in the loan fund, according to corporation CEO Patrick Miller.

Accordingly, the corporation has reached out to the Department of Community and Economic Development and plans to accept the department’s invitation to apply next year for $100,000 to recapitalize, Miller said at a recent meeting.

Over the years, the recipients of 42 loans have repaid $900,000 to the revolving fund, but there are 10 active loans, and the money isn’t returning fast enough to keep up with demand, Miler said.

In the past year or so, the corporation has loaned $8,000 to Mountain View Eye Associates, $30,000 to A Better Address and a total of $55,000 to a pair of separate businesses under the J.J. Hadley Building Co. project, Miller said.

It has also awarded mini-grants — the maximum is $5,000 — to the Flower Shoppe building project, the 1402¢ Bakery & Lunchroom; ERG Realty ($500); and each of the Hadley projects, Miller said.

At the meeting, the board approved the transfer of $2,500 from the loan fund to provide half of a $5,000 mini-grant for proposed improvements at Tom & Joe’s restaurant — the project that finally emptied the mini-grant fund.

Restaurant owner George Batrus wants to restore the restaurant to the look it had when the family bought it in the late 1960s.

GAEDC member and Blair County Commissioner Ted Beam Jr. said he recommended the restaurant recently when out-of-towners were looking for a place to eat.

GAEDC’s Design Committee has to approve mini-grant projects, which require some amount of historic restoration.

“You can’t get much more historic (than Tom & Joe’s),” Miller said.

At the meeting, the board also approved a $30,000 loan for Christopher Roberts to make improvements to the Allegheny Furnace Elementary School apartments along Fifth Avenue at 31st Street.

“They’re in need of TLC (tender loving care),” Miller said. Roberts plans to make the building look more like what it was originally, Miller said.

He’s doing much of the work himself, Miller said.

Asked by a board member whether GAEDC would require a personal guarantee, Miller said no: It never has — and yet has only experienced a single bad loan since the program began in 1990.

Mirror Staff Writer William Kibler is at 949-7038.

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