October 13, 2016 4:03 am
Published by Michael
JAMES BEATY | Staff photoCity of McAlester Community and Economic Development Director Leroy Alsup addresses the city council from the podium Tuesday night during the councilas regular meeting at City Hall. ”+ ”+
JAMES BEATY | Staff photoCity of McAlester Community and Economic Development Director Leroy Alsup addresses the city council from the podium Tuesday night during the councilas regular meeting at City Hall.
A majority of McAlester city councilors voted to formally accept a $1 million grant from the Oklahoma Department of Commerce for the Krebs Brewing Company project a but that doesnat mean the check is on tap.
Itas another step in the procedure required by the Department of Commerce before the money comes to the city.
aYes, youave got the grant, but we will not have the money until you get those funds released,a Grant Writer Millie Vance told city councilors during their regular Tuesday night meeting at City Hall.
The Department of Commerce will not release the funds until the city hops through a few more hoops, according to Vance.
Those include satisfying the Department of CommerceA the city councilors understand the contract and also requires a formal appraisal of the property proposed for the Krebs Brewing Company at the Steven Taylor Industrial Park.
The city of McAlester plans to use the $1 million in grant money to purchase a building for $1.1 million for use by Krebs Brewing Company, with the additional $100,000 to come from city of McAlester economic development funds, according to city officials.
City councilors also passed a companion measure, all part of the process required by the Department of Commerce to obtain the $1 million in Community Development Grant-Economic Development Infrastructure Finance funds.
Included in the measure accepting the grant are requirements to provide job tracking and authorization for the mayor and city staff to sign environmental documents and release of funds documents as well as other related materials.
Job tracking is required because the agreement calls for Krebs Brewing Company to create at least 30 new jobs over a three-year period that pay an average of $41,000 annually, plus benefits.
The companion measure called for the city to act upon a Statement of Compliance of Special Conditions as required in the contract, including procurement procedures, ineligible costs, loan rules, the sale of the building and appraisal of the property. A property appraisal is one of the conditions required for the grant.
Vance assured the council the $1 million from the Department of Commerce is an outright grant that will not have to repaid.
aThis is all grant; no loans are involved,a Vance said.
Both measures passed with five ayesa votes from the city council. Voting ayesa were Mayor John Browne, Ward 1 Councilor Weldon Smith, Ward 4 Councilor Robert Karr, Ward 5 Councilor Buddy Garvin and Ward 6 Councilor Jason Barnett.
Ward 3 Councilor Travis Read was not present at the meeting and Ward 2 Councilor Cully Stevens abstained.
Asked after the meeting why he abstained, Stevens said he did so because amy company owns the building.a Stevens confirmed he was referring to First Realty, owner of the building at the Steven Taylor Industrial Park the city of McAlester plans to purchase for $1.1 million for the Krebs Brewing Company project.
During the meeting, McAlester Mayor John Browne voiced his support.
aThis is going to be a great thing for our community,a Browne said.
The award-winning brewery currently has brewing facilities at Peteas Place in Krebs,
Plans call for the city to buy the former QFI building, which includes a 52,000 square-foot building and 17 acres at the industrial park, according to McAlester Community and Economic Development Director Leroy Alsup.
To reach the $1.1 million asking price for the property, the city plans to add the $100,000 in economic development funds along with another $25,000 for Vance, the grant writer.
The matter is expected to come before the council at least one more time after the property appraisal is completed, according to Alsup.
Another part of the grant application requires matching funds that Zach Prichard of Krebs Brewery previously said is needed to purchase new equipment.
As part of the matching funds process, the city of McAlester earlier authorized placing a $250,000 certificate of deposit from the cityas Fund 30 Economic Development money to First National Bank and Trust in McAlester for a abusiness development loana to Krebs Brewing Company.
The cityas $250,000 certificate of deposit will be used as collateral for a larger loan from the bank to the brewing company, according to city officials.
When everythingas completed, the city plans to lease the building and property at the industrial park to Krebs Brewing Company and charge no rent for the first 18 months, Alsup said in an earlier interview.