FONDA?- The Montgomery County Industrial Development Agency has said it is willing to forgive part of a loan it made to Power Pallet Recycling Center for providing employment opportunities.
The company says relief from the $350,000 in its remaining loan debt would help the business pay for a 4,000 square-foot expansion at the site.
Gary Donadio and Sam Donadio, vice-president and president of Power Pallet, came before the Montgomery County IDA board Thursday night to ask that a portion of its loan be changed to a grant, saying the move would support an expansion project estimated to cost the company $1.2 million.
Donadio said that the loan funds originally were given to the county as a grant, which was then passed on to Power Pallet to hire a total of 40 new employees, which would raise its total personnel to more than 140 employees. To date, it has hired 32 new employees, eight short of the required 40.
IDA?Executive Director Ken Rose said Power Pallet has almost $350,000 left to pay on its loan. At about $9,000 a month, that would take 38 months to pay fully. However, the IDA board agreed to change the loan into a grant. According to Rose, Power Pallet must hire the eight additional employees and keep them on staff for six months and continue to make loan payments. After six months, whatever is left of the debt would be written off.
Donadio said the company hopes to save about $300,000.
"It's not easy to get employees," Donadio said. However, he hopes that with the summer season ending, hiring may become easier.
Rose said he thinks the company will meet the IDA's terms. The Montgomery County Board of Supervisors would need to look over the deal to give its approval. Rose said the matter could be settled at an October meeting of the Board of Supervisors.
Donadio said the planned expansion would increase the company's facility from 4,000 to 5,000 feet and add an automated element to the recycling process.
According to its website, Power Pallet handles the management, tracking, delivery and removal of pallets, trailer-spotting and taking care of excess metals from industrial procedures.
The company has been in business for the last 37 years, the last eight in Montgomery County.
Arthur Cleveland covers Montgomery County. He can be reached by email at email@example.com.