After weeks of debate, Lucas County Commissioners vote 2 - 1 to give the Maumee Authority Stamping a $1.5 million loan
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TOLEDO, OH -- After weeks of debate and delays, the Lucas County Commissioners at Tuesday's meeting approved a $1.5 million loan for the Maumee Authority Stamping to help re-open the former Maumee Ford Stamping plant.
"If we don't start taking these risks, nothing is going to change in Lucas County," said Pete Gerken, (D) Lucas County Commissioner.
The vote was 2-1 with commissioner Tina Skelton Wozniak voting against the loan.
"I would have preferred to have put fewer dollars from this county, but at the end of the day, lets hope it takes off and It's a booming business," said Wozniak (D) Lucas County Commissioner.
Keith Obey, who is spear-heading the drive to reopen the plant under an employee-ownership program, was at the meeting.
"They are the best work force in the world. They've been extremely supportive and even more patient. They've got the best work ethic and skills,"said Obey, Maumee Authority Stamping President and CEO.
Several others who have committed money to the project were also in attendance.
"I am ecstatic. I have waited. I think I can finally breath. It's been uphill and downhill but I always was positive," said Cynthia McNamara, Former Maumee Ford Stamping worker.
Obey, who is the CEO of MAS, had asked the county for a short-term, 7-percent loan to help close a deal to buy the former Ford plant in Maumee from the automaker before October 15, 2008. To secure an investment of $14 million from a private investor, Obey claims he needs $3 million in "operating capital" when the plant is purchased. The company has raised $1.5 million from investors and an additional $900,000 from "employee investors," who are paying $16,000 each for a chance to work at the plant and own a share in the company. But the $900,000 is being held in an escrow account until the investments are approved by the SEC. The terms of the deal call for the county to be repaid by the end of the year, as well as to be the first to be repaid.
Moments after the landmark vote for Maumee Stamping, Commissioner Ben Konop introduced a resolution to spend that interest money in the pursuit of high-tech jobs. The proposal was tabled for discussion at a future meeting.
"We need to take some bold steps to put people back to work revive our economic fortunes," said Konop, (D) Lucas County Commissioner.
The employee owned plant could start producing parts in November. The company aims to hire 150 people back in the next year. 500 workers could be on the job in three years.
