$75,000 FOR GROWTH: Watertown Trust, JCIDA see company's future as bright, even after two bad years

Watertown Local Development Corp. and Jefferson County Industrial Development Agency are helping Current Applications prepare for growth.

The two agencies each put $75,000 toward a line of credit for the company, which has changed its line of products to manufacture small brushless motors.

"Their sales were off 35 percent last year, but they've gained that back plus some this year," said Donald W. Rutherford, CEO of WLDC, also known as Watertown Trust. "Their 2011 sales are hitting record numbers for the company. They've got $1 million in contracts already."

The two boards agreed during a joint meeting on Thursday. In June, the two agencies approved $75,000 each for a working capital loan, which will be paid off by the end of the year.

"Last year and the year before were down years, and a lot of these companies were just closing their doors," Mr. Rutherford said. "But they retrenched and hung on."

During the slump, the manufacturer went down to 20 employees on three-day work weeks. Now, it's recovered to 37 employees, with the possibility of adding a few more, Mr. Rutherford said.

The manufacturer is working with the two agencies and its commercial lender, M&T Bank, to restructure its long-term debt. The company wants to buy the building it rents from the Trust at 275 Bellew Ave. S. in the City Center Industrial Park, which could save it about $3,000 per month.

"They're looking at their short-term needs, but also their long-term needs," Mr. Rutherford said.

"It looks like the long-term needs of the company are to get a financial institution," said Urban C. Hirschey, chairman of JCIDA's board.

JCIDA CEO Donald C. Alexander said the company put a lot of its own capital into developing brushless motors and changing its production.

"That was a critical move," he said. "If they had not done that, perhaps the cash flow would have looked a little better now, but their long-term prospects wouldn't be as good."

The Trust would manage the $150,000 line of credit, which will carry 5 percent interest and be available until April 2012.

The Trust board also approved a bridge loan to Neighbors of Watertown Inc. The $439,000 loan will cover the amount due from the state Restore NY Initiatives program. The state took seven months to pay Neighbors' first $1.1 million bill. Neighbors was promised $1.55 million from the program.

The Trust will ensure that federal sources of funding aren't jeopardized by bridging the loan. Those federal sources of funding also require the project to be complete and other funding sources to pay their portions by Dec. 31.

"It's critical we get to a closing so we don't jeopardize the money," CEO Donald R. Rutherford said. "It has to be complete by the end of the year."

JCIDA's board also approved allowing Eagle Ridge's developer, Clover Construction Co., Williamsville, to refinance the project with a new bank.