JOHNSTOWN -The city is assuming the assets of the Johnstown Economic Development Corp., which is being dissolved.
The Common Council approved having the city receive the assets of the Johnstown EDC Monday night at City Hall.
"The city of Johnstown has a small economic development corporation," city Treasurer Michael Gifford reminded the council.
He said the agency's assets are in a bank account containing about $50,000 to $70,000. But Gifford said the "rules have changed substantially" regarding regulations with such economic development agencies. He said the city now feels the Johnstown Economic Development Corp. should be dissolved.
Once that is accomplished, he said the money will be placed in a city "economic development" sequestered fund.
"It will make everybody happy because there's much less compliance," Gifford stated.
The treasurer said the Johnstown EDC's assets are currently managed as a revolving loan pool.
"It will be a Common Council-run fund once this thing is dissolved," Gifford said.
The resolution approved by the council Monday stated the Johnstown EDC previously approved a plan of dissolution and intends to file a certificate of dissolution upon the consent of the state Attorney General's Office and with the approval of state Supreme Court.
The resolution indicated the Johnstown EDC will assign its assets to the city for administration in accordance with terms of a U.S. Department of Housing and Urban Development Grant.
The Charities Bureau of the state Attorney General's Office has requested confirmation in writing that the city agrees to accept the assets, manage, and administer them in accordance with the grant.
Michael Anich covers Johnstown and Fulton County news. He can be reached at firstname.lastname@example.org.