YOUNGSTOWN, Ohio -- City Council will consider a $233,000 float loan at its meeting tomorrow night to Valley Foods Inc. to support its acquisition and renovation of the former Weatherbee Coat Factory building downtown.
Demolition work began last year on the building, where Valley Foods plans to expand its operations, and where the company is renovating about 11,000 square feet of space. Valley Foods is headquartered on East Boardman Street, near the Weatherbee site.
The float loan is being offered at ΒΌ% interest for a 12-month term. The total project is estimated at $1.75 million.
"It's just an additional source of funding to help completion of the project," said T. Sharon Woodberry, city economic development director.
Last month, owner John Valley projected a spring date for completion of the project, which will provide the company with additional storage and production space.
In 2010, the city received a $657,396 Clean Ohio grant for demolition and remediation work at the site. Valley Foods expects to hire 20 additional workers over a three-year period at the new site. The company has 55 employees at the existing plant, Woodberry said.
Copyright 2012 The Business Journal, Youngstown, Ohio.