The Chautauqua County Industrial Development Agency is expected to provide part of the financing for the new corporation that will own the AL Tech Specialty Steel plant on Brigham Road.
Before the agency's Board of Directors public meeting Tuesday in Four Points Hotel, the Loan Review Committee met for two hours with representatives of AL Tech and the United Steelworkers of America, IDA Chairman Frank Pagano reported to the board.
The IDA's participation is expected to be a $1 million loan from the AL Tech Revolving Loan Fund and a $150,000 loan from the Chautauqua Regional Industrial Development Corp.
The AL Tech Revolving Loan Fund was created in 1976 when the federal government gave a $10 million grant as part of a financial package so the managerial employees could buy the former Bar Division plant from Allegheny Ludlum Steel Corp. As the loan was repaid, the funds were used as seed money for economic development in Chautauqua and Albany counties.
Ownership of the new company will include a 44 percent stake by the creditors of the present company and a 44 percent stake by the union.
Pagano said the Loan Review Committee will meet Tuesday in Fredonia to decide on a recommendation to be made to the full board at a Sept. 27 meeting. If the board approves, the loans must also be approved by the Empire State Development Corp.
Since the company is still in the process of bankruptcy, the judge must also approve the financial package before the newly formed company can purchase the AL Tech Specialty Steel Corp.
"We will be saving 305 jobs at the company. This is important for the North County. There are family-sustaining jobs. The company expects to create an additional 75 to 80 jobs in the next few years," Pagano said.
In another project in Dunkirk, the board approved a tax lease and payment in lieu of tax agreement for the Cliffstar Corp. development on Cliffstar Drive.
The project includes a new 123,000-square-foot warehouse, renovations and additions to the existing building, the purchase of machinery and equipment, and a new bottle-making facility to be housed in part of the new building.
In other business, the board executed an option with the National Bedding Co. to purchase nine acres in the Joseph Mason Industrial Park for a new bedding manufacturing facility.