Tenants in the Ironton City Center will continue to receive a cut in their rent as long as they keep their bills paid.

Monday, July 24, 2000

Tenants in the Ironton City Center will continue to receive a cut in their rent as long as they keep their bills paid.

Ironton City Council’s Finance Committee decided at its meeting Thursday to recommend continuing the rent reduction program.

The final decision will be made by the full council.

City finance director Cindy Anderson said the current rent reduction agreement with the businesses left in the City Center expired June 30. She asked the committee to consider a new proposal, with additional provisions, that would extend the discount six months.

Mrs. Anderson also recommended not allowing businesses that are not current in their rent to re-apply for the rent reduction benefit within the six-month period.

The rent reduction is currently 50 percent, which means a business in a small storefront would pay about $125 instead of $250 a month.

Council chairman and finance committee member Jim Tordiff said rent reduction should continue for now, but that the city’s ultimate goal should be to put more businesses in the City Center.

"I don’t have any problem with rent reduction considering the circumstances," he said. "But do you think it is time to have a better marketing strategy? I know it hasn’t been as successful as we had hoped, but I still think it is a good idea."

Council member and finance committee member Leo Ulery suggested possibly using a Realtor or other professional to market the open storefronts, which he said are "a good deal" for businesses.

Mayor Bob Cleary agreed to look into marketing possibilities.

Also on the agenda Thursday was the city’s plan for the proposed new fire station.

Mrs. Anderson presented a graph and figures covering the city’s current budget and the possible financing options for the station.

The estimated construction cost of the building is $1.1 million.

Mrs. Anderson said the city could finance a $1.1 million project for 30 years with a U.S. Department of Agriculture loan at 5 percent interest, or $1.2 million for 40 years with a USDA loan at 5.125 percent and keep the same payments of about $71,000 a year.

She said she is not sure if the 40-year financing option still carries a 5.125 interest rate, however. The city could not afford the 40-year plan without the lower interest, she added.

The difference between the two options would be in how much the city would end up paying for the building, Ulery said.

"With 30 or 40 years, we will pay for that building two or three times over," he said.

Ulery suggested that the city consider putting more money toward the recently purchased truck and then devote more funds later to construction, or that the city simply build the station in stages.

"What we really need is a place to put this new truck," he said.

Mrs. Anderson said that although the partial construction would reduce some of the city’s money concerns, a loan of less than $1 million is difficult to get.

Ulery said he wants to build a fire station but does not want to skimp on the project.

"I have always been in favor of a new building," he said. "I just want to do it right."

Tordiff said the city would just have to wait and see what effect recent plant closures have on the budget and explore other funding options before making a decision.

He added that recent changes in the city’s economic status put the wrench in the station plans, not bad planning by council.

"When council put the fire fee on, it would have provided enough money," he said.

When Intermet-Ironton Iron and Cabletron closed their doors, the city lost more than $15,000 in revenue, Mrs. Anderson said.

"We lost the largest water consumer we had," she said.

Tordiff asked that the committee recommend a work session with council to discuss the fire station issue more completely.

"As it is right now, unless we want to raise the fire fee, or have less than a desirable building or use general fund money, we’re stuck," he said.