Erie City Council approves loans for Smith Provision move
Smith Provision Co. will get some financial help from a city loan fund to move its production operation from Millcreek Township to Erie.
Erie City Council on Wednesday agreed to two separate loans totaling $750,000 for the project, which ultimately will bring more than 40 full-time jobs to the city.
“We are really happy Smith Provision Co. has chosen to locate in the city of Erie, and we’re more than happy to support them,” Councilwoman Jessica Horan-Kunco said.
One $250,000, seven-year loan will pay for the purchase of food processing equipment. An additional $500,000, four-year loan will pay for renovations to what will be Smith’s new Erie site, the former OEM/Erie building at 1890 W. 20th St.
OEM, a plastics company, closed its Erie facility in 2007.
Both loans are through the Enterprise Zone Revolving Loan Fund, a loan fund administered by the city that helps finance industrial development projects within a defined geographic area of the city.
Smith Provision, now located at 2251 W. 23rd St., plans to move into the new larger space sometime this month with its current full-time staff of 38 employees.
The company expects to create between 10 and 20 new full-time jobs within the next two to three years, President Mike Weber said.
Smith has outgrown its current facility, Weber said, and the new site allows for more modernized food production and the adoption of the most current food safety practices.
“The important thing is the flavor of our products won’t be changing,” Weber said.
Other funding for the project includes up to $1 million from the company, and $2 million in the form of a low-interest loan from the Pennsylvania Industrial Development Authority, through the Economic Development Corp. of Erie County. FNB Corp. is providing an additional $4 million in financing through a loan.
Weber said he was very happy with council’s decision to ratify the Enterprise Zone loans. The loans are critical to the project, he said.
“Even though they’re a piece of the puzzle, they’re the final piece,” Weber said. Without them, “It would be extremely difficult, if not impossible, to complete this project and enable our move from outside the city.”
ERICA ERWIN can be reached at 870-1846 or by e-mail.
Article source: http://www.goerie.com/article/20120105/NEWS02/301049880/Erie-City-Council-approves-loans-for-Smith-Provision-move
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