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City grant program may be in jeopardy

Staff reporter

The city's grant program for businesses may be in jeopardy.

Marion Economic Development Director Jami Williams told Marion City Council Monday evening that Up In Smoke smoke shop had closed Dec. 1 because of a recent break-in. The owners, Glen and Jamie Eickleberry, will continue to sell tobacco items from their home, Williams said.

The retail store received a $5,000 grant from the city for inventory when it first opened this past summer.

Grant funds are given to businesses after a committee of three people makes a recommendation to the council based on the business being unable to obtain funds through conventional methods and community need for the goods or services.

Other grants have been awarded to local businesses with $6,000 remaining in the fund.

Williams said that negative publicity had hurt the program and wasn't sure if it should continue.

Councilman Stacey Collett asked if there needed to be "more teeth" in the program. Williams suggested setting up the program as a "forgiving loan" instead of a grant.

The city could offer loans with interest rates that gradually would be forgiven. For instance, for each month a business is in operation, a portion of the loan could be forgiven. If the business remained in operation for a specific amount of time, then the loan would be "forgiven" and the owner would not owe the city. However if the business were to close before that specific time, then it could owe the city all or a portion of the loan.

Mayor Martin Tice said he wasn't sure if a loan program was the way to go.

"In the economic development game, there are times when you lose," he said.

Williams said with the closing of one business, two new businesses have opened — Rick's Service at 147 W. Main and Good Happens mini spa at 410 E. Main.

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