Loan to help Severn business
Published 2:38 pm Thursday, April 16, 2009
SEVERN — A short-term bridge loan from Northampton County will help in securing a rail line and a chemical plant here.
Recently, the Northampton County Board of Commissioners approved a $375,000 short-term bridge loan to Resinall Corporation Inc. in assisting with the NCVA Rail Improvements Project.
According to Economic Development Director Gary Brown, the rail line and the Resinall plant must come into compliance with Environmental Protection Agency (EPA) and Homeland Security regulations, which require security fencing and a buffer zone around the location.
Brown said in order for those two security efforts to be established, approximately 2,000 feet of the main rail line needs to be relocated.
The funds for the project will come from the county’s Economic Development Revolving Loan Fund and Economic Development Capital Reserve Fund.
Brown said the $375,000 loan will be repaid to the county by Resinall after it is reimbursed by the Department of Transportation (DOT) Rail Division. The repayment will take place approximately six months from the effective date of the loan and issuance of the contractor’s notice to proceed.
The commissioners approved the short-term loan bridge on the conditions that it not exceed $375,000 and directed County Attorney Charles Vaughan to develop and execute such instruments necessary to document and secure the loan.
The motion passed without objection.