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During Monday's work session, the council heard again from Vic Straub of the St. Marys Airport Authority. Straub attended the last council meeting asking it to approve the use of the terminal building as collateral for a $60,000 loan the authority needs.
The building is on city property so the bank required the council's approval to use it as collateral for the loan.
The $60,000 had been used to renovate the kitchen in the building's restaurant.
At that previous meeting, Straub had said they hadn't planned to do the kitchen, but couldn't find anyone to operate the restaurant if they had to renovate the kitchen as well.
The authority received a $90,000 Rural Business Economic Grant ($50,000 for the building and $40,000 to renovate the restaurant), but if a restaurant didn't go in, then the authority would have had to pay back $50,000 of that money.
The motion to allow the use of the building as collateral did not pass at the last meeting because council members felt they didn't have enough information and were also disappointed that the authority hadn't told them the situation they were in at a meeting before spending that money.
The council has been sent additional information since then, Councilman Sean Gabler said.
The authority has applied for and believes it will receive a $25,000 Department of Community and Economic Development grant and is also likely to receive a $37,500 grant from RBEG. It must use $12,000 of that money to complete the deck area of the restaurant, but the remainder of the money from the two grants can be used to pay off that $60,000 loan, Straub said. The remainder of the money will be paid using rental fees from the restaurant.
Gabler said that if the council does not allow the building to be used as collateral, the contractor will hold the city liable for that money and it would have to pay that money, plus legal fees.
The council unanimously approved allowing the building to be used as collateral.
It did ask that board and authorities keep them up to date on projects taking place.
The council also approved allowing the Benzinger Township Golf Authority to refinance its mortgage to make $100,000 available to buy new equipment and start an equipment fund.
The authority needs to buy two new mowers and a tractor. Its equipment is more than years old and is used four to six days a week, golf course Superintendent Jim Dorinsh said.
"We have a beautiful golf course," Dornish said. "It's a place worth keeping and to treasure.
The land without the golf course would bring in about $1,381 in taxes, but with it it brings in more than $18,000 in taxes a year, Herb Straub, chairman of the golf authority, said.
The authority has a record of paying its debt. The only payment outstanding is $44,294, which will be paid off in the first part of 2009, he said.
In 2003 the mortgage was at $992,445 and the golf authority asked that the council allow it to be increased to $1.3 million to put an addition on the building .
The authority's current mortgage is at $1,025,720.40 and the refinancing will increase it to $1,125,000.
Also,
* The Knights of Columbus will place the Nativity scene on "The Diamond" in the downtown from Nov. 15 to Jan. 3.
* The council approved closing Market Street from 7-9 p.m. Nov. 21 for Light Up Night.
* The council reviewed a land development application from Todd Hanes to build a building for a graphite cutting machine on Grotzinger Road.
* Budget meetings will be held at 6:30 p.m. Thursday, Monday and Nov. 12 and Nov. 13.
Councilman Dick Dornish said he is "pleased with his initial glance at the budget."
