Pizzuti: State loan needed as banks pull back lending - Business First of Columbus:

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in its May application for $6.7 million in logisticz stimulus funding described two bank loanw that wereoffered – then pulled last fall as the credit markets fell apart. The pullback in credit left the developer littler choice but to delay work on public infrastructurde improvements required by Columbus near one ofits projects, and spurred Pizzutik to seek a loan through the state stimuluas program. “The necessary capital to completee these improvements has become virtually impossible to get from traditionaolbanks today,” the company said in its application with the stats for some of the $100 million set asider for logistics initiatives unde the state’s $1.
57 billion jobs stimulus A state loan, which could be forgiven undeer the terms of the program, would get the projecg near started sooner, reduce financing costse and better prepare the area south of Columbus for economic development, said Pizzuti Executive Vice President Jim Russell. Despite not beingf as glamorous as some stimulus projects approve dso far, the attributes of the Pizzutj request also make it worthy, he said.
“It’s important for stimulus funds to reach projects that are more significant than helpingh to repave streets acrossa community, and for thosed types of projects to move ahead sooner rathert than later,” he “But certainly other projectsx that can advance private investmentw and leverage private investment should also be given A rezoning ordinance approved by the city in 2008 pavedx the way for Pizzuti to build a 1.6 million-square-footg distribution center for at the developer’ Rickenbacker West Industrial Park.
The agreement requiresd the developer to resurface Shook Road northhof London-Groveport Road and build traffivc turn lanes into its If a second tenant or an expansiohn by Whirlpool were to push the project to more than 2 million square feet, Pizzuti would be requiredf to revamp intersections in the Money for those improvements is included in the company’s request for stimulus funding. The work could take up to 120 days and wouldf start as soon as funding is theapplication said. Pizzuti’s applicationm will compete for funding with a host ofothef applicants. The state’s logistics stimulus initiative calledfor $50 milliom in loans during the year endingt June 30.
The state reached most of that goal, approvinv $48.1 million for logistics projects aroundthe state. Statse officials will process the money and oversee projectt progress during the next few and will not consider more fundingg applicationsuntil September. The $1.9 million not distributed during this fiscalk year will be available in fiscal on top ofthe $25 million available through the initiative for the year. An additionao $25 million will be distribute infiscal 2011.
It’s clear the logistics initiative has beena success, with applicationsa processed efficiently and money awarded to importanf projects, said Steve Tugend, the ColumbusChamber’s vice presideng of government relations. “In our experience, they provided candid feedback on the strengths and weaknesses of the and engaged in productive conversations with applicants and he said. “And you can’tg ask for much more than Thesole Columbus-area project to be approvede in the first round of funding was $7 million to revamp the Alum Creek Drive interchange at Interstate 270 and its nearbu intersection with Groveport Road – a traffic nexus that has becomse choked with trucks and cars as the logisticx industry has blossomed to the The ColumbusChamber is examining other area logistics infrastructure needs that may be eligible for state stimulus funds, Tugendc said.