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DUNKIRK – Collecting unpaid loan payments and rewriting loan paperwork from area businesses was a priority for members of the Dunkirk Local Development Corp. at their regular meeting Wednesday in City Hall.

Steve Neratko, the city’s director of planning and development, provided a report on the businesses in arrears as well as businesses that need new agreements to have their loans in compliance with federal standards.

An agreement with the owners of the Clarion Hotel and Conference Center on Route 5 was reviewed. The group borrowed $120,000 from the development corporation through funding provided by the federal Community Development Block Grant Program. The funds were borrowed with the promise of a water park to be developed at the business. The park was never built.

The new agreement seeks repayment on the loan and guarantee of the note with the property and its furnishings. Members approved the new agreement.

Members also looked at the history of repayment of Paradise Fence and Flag Co. Neratko said documents indicate Paradise is $14,386 in arrears on a $30,000 note.

The last payment was received in February 2010. Mayor A.J. Dolce said the city has to consider the liabilities associated with the company if it wants to call in the loan and take the property in trade.

The group also reviewed the account of Enviroteknik, which is reportedly in arrears $36,683 on a $62,000 note. Its last payment was posted in May.

Dolce said the city has been working with a developer and will see if any of the past-due locations are of interest for new businesses.

Members of the development corporation will be looking at collection methods and help from the federal Department of Housing and Urban Development to have the revenue paid back.

In other matters, the board members agreed to provide $500 to the Dunkirk Chamber of Commerce to promote the Dunkirk Farmers’ and Craft Market, which is held on Thursdays and Sundays in Memorial Park. The Chamber is coordinating the market and is seeking more vendors as well as additional customers to visit the location.

It was agreed that the development corporation would provide insurance coverage for a community garden to be located in the city. Councilwoman Stephanie Kiyak said a location in Washington Park is being considered for the garden. City Attorney Ron Szot told members the location should be selected by the City Council. The garden will be done in cooperation with a Chautauqua County grant program and the assistance of Jamestown Community College.