LOCKPORT – The only thing holding up the signing of the Trek Inc. lease on city-controlled space in downtown Lockport is the company president’s absence on a trip to Japan, Corporation Counsel John J. Ottaviano said Wednesday.
He said terms have been completed for the deal that would bring the Medina electronic instrument manufacturer and nearly 100 jobs to Building 4 at Harrison Place, Walnut and Washburn streets.
However, Trek President Michael C. Dehn is not available to sign the documents for a few days until he returns from Japan, where Trek has a plant.
R. Charles Bell, city planning and development director, said an appraiser hired by Five Star Bank, the lender financing the Lockport deal, set the value of the three-story, 96,000-square-foot building at $3.8 million.
That’s enough to support a $3 million loan the bank is making to 210 Walnut LLC, the city-controlled entity that owns the former auto parts plant. The loan is needed to pay for interior renovations, which are 210 Walnut’s responsibility under the deal.
Bell said the $3 million loan is for 20 years at an interest rate of about 5.1 percent. That sets the monthly payment over $20,000. Ottaviano said Trek’s lease payment to 210 Walnut will be more than that, to cover the debt service.
“Because things are moving so fast, there’s a not-to-exceed payment number in there,” Ottaviano said.
Meanwhile, in another business venture, the Common Council voted unanimously Wednesday to grant a special-use permit for the first phase of auto dealer Charles Heinrich’s Lockport Recycling Center on Oakhurst Street.
The first phase involves installation of a truck scale and two concrete pads for transferring construction and demolition debris for recycling or disposal. It will cover one acre of the 16-acre property in an industrial zone.
There are two nearby residents, neither of whom voiced opposition at a public hearing Wednesday.
“The guy who owns the property is going to sell the property. This seems a lot less worse than it could be,” said one of them, Richard Huntington.