Grants Approved for Main Street Businesses

Council members agreed to set up a fund to aid businesses hit hard by last week's storm -- in particular, four businesses housed in the century-old building at 501 Main St. that collapsed Wednesday from the weight of accumulated ice, sleet and snow.

Council members decided on Monday that the temporary small-business assistance fund should be free to dispense grants of up to $10,000 to help individual businesses with their relocation, permitting and other costs. The affected businesses are: Mike's Barber Shop, Middletown Framing, Tesoro Unique Treasures & Gifts and the accounting firm of Guilmartin, DiPiro & Sokolowski.

In an unrelated matter, they also asked the personnel review committee to explore establishing a "sick-time bank." The bank would enable a municipal employee to donate unused sick time to another worker suffering from an extended illness.

The grants do not have to be repaid and would be parceled out according to need based on discussions involving the affected business owners, the council's economic development committee, the city department of planning, conservation and development and the mayor's office.

The proposal originally before the council called for grants of up to $5,000 for each affected business. But the amount was boosted after Councilman Ronald Klattenberg suggested that a pool of funds rather than individual allotments would provide flexibility for dealing with different levels of need.

Klattenberg also floated the idea of no-interest loans rather than grants.

Councilman Gerald E. Daley, who chairs the committee for economic development, said loans are a more formalized structure requiring collateral, among other things. 

He said Middletown has a long history of offering businesses incentives to move to town. This program, he said, is "a matter of business retention; and in my view it's even more important." Middletown Framing has been in Middletown for 35 years, he said. 

Councilman Dan Drew agreed and took the argument a step farther. If Middletown doesn't rise to the moment to help existing businesses, "what does that say to other businesses that are thinking of re-locating here?"

Nine council members voted in favor of the grants. Councilman David Bauer cast the lone dissenting vote, arguing members were acting too hastily and that the proposal was "not a fully developed idea."

The idea for a sick time bank, championed by councilwoman Deborah Kleckowski, grew out of a case involving a school-cafeteria worker. The unidentified worker suffered a stroke; she is recovering and trying to return to work, but had not worked in the schools long enough to qualify for sufficient benefits.

Kleckowski said co-workers came to her aid, donating more than 400 paid sick days. But the school board refused to allow them, despite a memorandum of understanding on the issue reached between the city and her union.

After a closed-door hearing on Monday afternoon, Superior Court Judge Robert Holzberg sided with the city and concluded the board of education must honor the agreement.

The council also adopted two resolutions. One congratulated the Xavier High School football team and coaching staff for the Falcons' 13 wins last season. Another resolution congratulated the Middletown chapter of the Veterans of the Vietnam War for their service to the country and the community on the chapter's 25th anniversary.