Terms of Sykesville loan extended SOUTHEAST--Sykesville * Eldersburg * Gamber

June 02, 1993|By Mary Gail Hare | Mary Gail Hare,Staff Writer

The Carroll County commissioners agreed yesterday to extend the terms of a $250,000 loan negotiated in July with the town of Sykesville and the developer of Raincliffe Industrial Center.

Under the agreement, the town would borrow $1.25 million from the state and $250,000 from the county to build the center's infrastructure. The county extension is contingent on state approval.

Raincliffe developer Dave Moxley requested a year's extension on the loan and had the support of the Sykesville Town Council. The current agreement expires July 1.

In the 11 months since the original agreement, Mr. Moxley has not been able to find a private lender for the project, but he said he remains optimistic.

"We have seen some activity lately in securing a loan," he said.

"The public financing would finance the cost of the infrastructure. The private financing would pay for the build-out of individual lots," Mr. Moxley said.

The loan would be repaid with taxes collected from new businesses on the site, at Route 32 and Raincliffe Road.

"This could amount to 25 percent of our tax base when [the center is] fully built and could provide many jobs," said Sykesville Mayor Kenneth W. Clark. "The center would be adjacent to the new Sykesville Park and would serve the needs of many people."

In addition to the park, on which the county is about to begin construction, about 1,300 new homes are in the development stage near the industrial center.

No public money will be disbursed until private financing is secured, officials said.

The town and the county should send letters to the state simultaneously endorsing the loan extension, he said.

Commissioner Elmer C. Lippy called for an extension of the loan in anticipation of the state's eventual approval. If the state declines the request, planning will have to start again.

"We are in the big circle again, trying to keep everyone interested in the project," said Mr. Clark.

Mr. Moxley said he had asked Mr. Clark to accompany him when he makes his request to the state Department of Economic and Employment Development "as soon as possible."

"It's basically a political decision," said Mr. Moxley. "It all depends on what the state wants to use the money for."

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