Developer Gilbert J. Jones is refusing to accept a $60,000 loan for improvements to his cinema from the Ogdensburg Growth Fund Development Corp.
I asked for $100,000, he said Friday. Im sticking with that.
On Wednesday, the Growth Fund agreed to lend Mr. Jones $60,000 for five years at no interest for two years and 2 percent annually for three years after that. He wants the money to buy digital projection equipment for his Ogdensburg Cinema I and II theaters at 119 Ford St., which he closed last summer.
But Mr. Joness refusal to a accept the loan is rooted in more than not getting what he asked for.
He questions the legality of Mayor William D. Nelsons status as the Growth Funds chairman, the agencys bylaws and its independence from City Hall.
I have high regards and respect for the board members, Mr. Jones said, not counting the mayor. It is fact (that) city employees micromanage the Growth Fund.
Mr. Jones said he would have his attorney review the Growth Funds bylaw as well as its April 1983 articles of incorporation.
Go ahead, the mayor said Friday.
Thats fine, Mr. Nelson said. We have bylaws. The Growth Fund is a separate economic development agency. It is not part of City Hall.
Mr. Jones initially asked the Growth Fund for $100,000 loan, but was approved for $60,000.
Mr. Jones subsequently changed the request to that he might accept an offer of $60,000 at 0 percent interest over four years.
The Growth Fund said its offer was calculated to reflect its formula of $15,000 for every 35-hour-a-week, full-time equivalency job created. Mr. Jones originally figured for 12 full- and part-time jobs over a three-year period, including a manager, film booker, projectionists, concession workers and a custodial worker. He later changed the number to seven full-time employees.
Mr. Jones bought the 9,000-square-foot, double-screen, 448-seat cinema in 1980 and has since spent $85,000 on a new roof and $52,621 on an upgraded ventilation system. He also installed a $73,000 marquee that currently displays paid advertising.