Council considers loan for business

A company that plans to operate a tire recycling facility in Fremont is seeking a $150,000 loan from the city’s revolving loan fund.

Fremont City Council members will consider Verdant Environmental Service’s loan application when it meets at 7 p.m. today in the council chambers of the Municipal Building, 400 E. Military Ave.

The council meeting is preceded by a study session at 6:45 p.m. Both meetings are open to the public.

Verdant, which purchased the former Fremont Contract Carriers site at 1602 Front St., is seeking the loan to purchase equipment. The company plans to shred old tires to be used for fuel.

Full terms of the loan were not available in background information provided by the city, but one requirement is for Verdant to create seven full-time jobs and two seasonal jobs.

Money in the revolving loan fund originally came from Community Development Block Grant funds. Having such a fund helps local businesses grow and attract new businesses, said Kevin Wilkins, executive director of the Greater Fremont Development Council.

“It is an important tool not only in Fremont, but in a lot of other communities,” Wilkins said. “Fremont has one of the most active funds. I don’t know of a community that has kept its money moving.”

Typically, loans made through the fund carry performance requirements, such as creating a certain number of jobs or paying certain wages.

Businesses such as International Spices, RTG Inc., Overland Products and Kelly Klosure have taken out loans from the fund for expansion.

“Almost every loan has exceeded (the requirements),” Wilkins said.

While the loans do carry risk, Fremont has had only one loan default since the program began. That loan was made to Core Communications.

If the Verdant loan is approved, money in the fund would be fully committed.

In other business, the council will:

* Consider an ordinance that would add fowl -- chickens, geese and ducks, for example -- to the list of animals banned from being kept and maintained within the city limits.

* Consider an ordinance that would allow charitable organizations to solicit funds from the sides of roads. This would allow, for example, off duty firefighters to collect donations for the Muscular Dystrophy Association at intersections similar to what is done is other communities.