Boscov appeals to Blair officials
By Kay Stephens, kstephens@altoonamirror.comHOLLIDAYSBURG - The chairman and chief executive officer of Boscov's NEWCO asked Blair County commissioners Tuesday to support his company's request for a federal loan that he and associates said poses no financial risk to the county.
Albert Boscov, whose family rescued 39 stores in early December from bankruptcy court and liquidation, said the new company had a financially successful Christmas and wants to keep moving forward.
To stay in business, the company prepared a $106 million financial package that includes a $35 million U.S. Housing and Urban Development loan. The loan is available to Boscov's through the state's Community and Economic Development agency, with support from six counties including Blair and Cambria, where Boscov's stores are located.
Boscov said he is confident that his company will be able to pay off the loan during the 20-year period.
''We're back to the 39 stores that have always been profitable,'' he said.
Commissioners agreed to vote Jan. 13 on the request.
While Commissioner Donna Gority is supportive, commissioners Terry Tomassetti and Diane Meling said they wanted a little more time to research and review materials.
Gority called Boscov's ''a good community partner'' and said she wanted to preserve jobs.
''This is something we can do, at no cost to the county, to create and keep jobs,'' Gority said.
Tomassetti said he received a document Tuesday morning that he, as chairman, must sign, indicating that the county looked for and found no other financial support. Boscov and associates assured Tomassetti that no other financial support exists.
''My biggest concern is whether the county is protected,'' Tomassetti said. ''If we're not going to have any liability, then I can't see why I wouldn't support it.''
Meling said she wants to see in writing the guarantees providing financial protection for the county.
''We've had promises from the state that have not been kept,'' said Meling, referencing the lack of reimbursement for full-time district attorney salaries. ''I want to be very sure that this is an ironclad indemnification.''
Walter J. Haglund, a consultant for the state Department of Community and Economic Development, told commissioners that the state has a loan loss fund of at least $500,000 that would be used to repay the federal government if Boscov's fails to make its payments. Because of that fund and the state's pledge, Blair's future Community Development Block Grant funds are not at risk, Haglund said.
The Blair County Planning Commission advertised and arranged two public hearings on the proposed loan.
The loan application is available in the For the Record section of the Mirror's Web site, which is at the attached link.
Mirror Staff Writer Kay Stephens is at 946-7456.
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livinginBEDROCK
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01-07-09 10:09 PM
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This bailout business is just going to delay the inevitable, a business that can't turn a profit will go broke and dissapear, its better to let it happen now and a stronger retailer will emerge.
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166482
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01-07-09 8:42 PM
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and as long as Uncle Sam is foolishly willing to give the money to failing business like Boscov's. Literally throwing good money after bad. I think we are all screwed, I'd love to stop paying taxes now that the govt has proved itself completely incapable of governing reasonably.
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166482
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01-07-09 6:14 PM
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Why bail out Boscov's. If they are running a business that isn't making money too*****bad, go out of business. Everyone thinks they should be bailed out. We'll never reach bottom and be able to come back up as long as whiny little cry babies like Boscov go begging to Uncle Sam for money.
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pasatiempo
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01-07-09 2:17 PM
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I absolutely agree with "Less"!!! Again,b the concept of captialism is very specific. A company cannot privatize their profits and socialize their losses! It is counter to what our republic is about!
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LessGov
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01-07-09 1:39 PM
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It is so EXASPERATING to read the comments of Commissioners Gority and Tomassetti. Gority: “This is something we can do at no cost to the county”. Tomassetti: “My biggest concern is whether the county is protected”. Is the “County” (government) the only consideration for these folks? I wonder if they care about the residents of Blair County? Apparently they don’t. If they did, they might keep in mind that the residents of Blair County also pay state and federal income taxes. They might stop to think that the $35 million we’re talking about doesn’t grow on trees in Washington, D.C. It comes out of our paychecks! If the residents of this county want Boscov’s here, let them make that choice at the cash register, not on form 1040.
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cuff0367
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01-07-09 1:07 PM
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It is not the Americans fault i go to work everyday. It might be the ceo fault that are making the big money./And i would almost bet the the Big Shots at Boscovs are still making the big money and i dont think its a good thing if the employes lose there jobs but you have to stop the bail outs and draw a line somewhere
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tazmon09
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01-07-09 12:47 PM
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if we bailout boscov,then every other retail stores and restaurants will want the same thing in the near future too.we cant afford to do this for every business.they just filed bankruptcy.whose not to say they wont do it again.just like some of the banks we bailedout.they turned around and close anyways.
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daddy12203
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01-07-09 12:12 PM
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THIS IS A SHAME. BOSCOVS HAS ALOT OF GOOD HARD WORKING LOCALS AND YOU WANT ALL OF THEM IN THE UNEMPLOYMENT LINE. IT WILL COST THE COUNTY MORE IF THEY WERE TO FAIL WITHOOUT THE LOAN THAN IT WOULD EVEN IF YOU WERE ACTUALLY HANDING OUT 5 MILLION DOLLARS, WHICH THEY ARENT. IM SURE IF IT WERE YOUR PLACE OF EMPLOYMENT YOU WOULD FEEL DIFFERENTLY, ESPECIALLY SINCE MOST AMERICANS ARE POOR WITH THEIR MONEY AND WOULD HAVE TO FILE BANKRUPTCY JUST BECAUSE OF A LAYOFF. EVERYBODY HAS TO HAVE A NICER CAR THAN THEIR NEIGHBOR. THIS RECESSION IS THE AMERICANS FAULTS IN THE FIRST PLACE, LOOK IN THE MIRROR.
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cuff0367
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01-07-09 11:55 AM
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Well the bailing out needs to stop. It started with wall street now it seems everybody wants bailed out from there own bad choices.And in the end its us the taxpayers that end up paying for it.And they did get a huge tax b reak for opening in Logan Town Center so i dont think the are a big tax revenue.They made bad choices so if they need to close so be it
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sheldonb
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01-07-09 11:12 AM
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The money is not coming from the county, it is coming from a federal loan. The loan just requires the support of local governemnt. The state is backing the loan, so the county won't be responsible if the they default on the loan. The jobs (even if they are retail) and the tax revenue from Boscov's to local governments makes it worth taking the risk, which is really none.
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Simpledave
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01-07-09 10:53 AM
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Didn't Boscovs already get a big tax break just to open that store in Logan Town Center? What a crock. It is about time we the people get a break, not the rich who have failed business, then close them down just to reopen under another name to get more public funding.
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cuff0367
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01-07-09 9:17 AM
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We are alway hearing the county is broke.They might have to raise taxes lay people off.There is wage and hiring freeze.That should be the answer for this to even be considered is crazy./JUST SAY NO WE DONT HAVE THE MONEY
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RazMnaz
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01-07-09 8:07 AM
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Boscov said "He had a financially successful Christmas" with his NEWCO company. Well then good, he doesn't need a loan. Get lost.
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livinginBEDROCK
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01-07-09 5:44 AM
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Don't do it, this is wrong, the voters and taxpayers are against it, this is bad policy.
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