The Republican., 1963-05-16
Approve Loan

Redevelopment Administration, the
organization that would provide g
major share of the funds from &
federal allotment, should the prof
cct be finally approved. The de.
cision now rests with the federal
;gency,
The various steps leading up tC
the action taken by two of the
Commissioners had beer com
pleted by last Monday when q
formal request for the loan was
made by Karol Rush, secretary OF
the Economic Development cor
poration.
After the request for the funds
was made last week it was also
officially announced that Lowell
L0omis had divested himself of
his entire share of 49 percent of
the stock of Recreational Indus
tries, turning it over to Helmuth
Heise. another member, thereby
complying with request that had
been made by Mr.. Swartzentruber
earlier. so that there would be no
conflict of interests. Mr. Loomis
had been chairman of the economic
development CORPORATION as well
as a stockholder in the independ-
ent organization that was seek
ing the loan. He retains his chair
manship of the economic develop
ment corporation.
If the project is approved the
Commissioners will be called on
to place the $4,000 in a special
bank account, to which will be
added S650,000 from the small busi-
ness administration after approval
from the Area Redevelopment ad-
ministration; $4,000 from the
State of Maryland; 100000 from
bank sources; and $4,000 from Rec
reational Industries, Inc, the cor
poration which would own and
operate the facilities, and assume
payment of the interest on the
loan, with the gradual repayment
of the amount borrowed.
The project, which had been un-
der consideration for many months
was first publicly aired in Feb
ruary, and has been discussed by
many groups since that time
IN order that there would be no
misunderstanding in the matter
the County Commissioners pre-
pared a statement of their actions
and this follows il its entirety:
May 10, 1868
Motion was made by Commits
sioner Opel, seconded by Commits
sioner Swartzentruber, that if the
County Commissioners should ap-
prove the loan of $5O,00OOO, re-
ouested by the Garrett County De-
velopment Corporation, in order to
makes a loan of the same amount
to Recreational IndustriS, Inc, as
the local governments so par
ticipation in year round recrea-
tional project, estimated to cost a
total of 81 ,OOO,OOOOO, the net prof
it from the County Liquor Dis
pensaries be designated, in so far
as possible, for the repayment of
the money so loaned to the Gar
rett County Development Corpora
ton, the same to be repaid from
said net profits at the earliest date
or dates upon which said net prof
its become available to the Coun-
ty Commissioners for such repay
ments. This motion was voted upon
with two voting favorable and
Commissioner Paugh opposed
Commissioner Paugh then made
e motion that no monies be turned
over to the Garrett County De-
velopment Corporation during this
year. Motion failed for want of
second.
Commissioner Swartzentruber
then stated that, considering the
prospective benefit to the county
from the employment of county
/ esidents in the new project and
increased tourist trade and gen.
eral benefit to the economic con-
dition of the county, and that a
substantial amount of tax would
be collected on the improvements
to be constructed, and that inter
est would be paid to the County,
through the Garrett County De-
Velopment Corporation, for the
amount advanced, he would make
the following motion: l move that
approval be given to the applica-
tion of the Garrett County Devel-