Grove City Council will consider allocating funds from its Town Center Loan Program to a local dentist for relocation to Park Street.

Grove City Council will consider allocating funds from its Town Center Loan Program to a local dentist for relocation to Park Street.

The Town Center Loan Review Committee met Aug. 22 to review Dr. John Dubos' loan application. Committee members recommended that council approve a $150,000 loan with a 15-year term at 3-percent interest, said Tami Kelly, clerk of council and loan review committee secretary.

Council will hear its first reading of the recommendation at its Sept. 6 meeting.

Dubos plans to move his dental practice to 3440 Park St., Kelly said. He currently is at 2655 Columbus St.

Kelly said the committee included caveats within its recommendation that deal with collateral requirements. If Dubos were to default on his loan, the building would be put up as collateral.

Council adopted the Town Center Loan Program in 2010.

The five-member committee has received four loan applications since its inception, Kelly said. One was withdrawn by the applicant and two have been approved. This is the third application that council will consider.

City officials vary in their opinions on the loan program's progress so far.

"The loan program is a great success for the large loans of greater than $100,000," said Town Center Loan Program chairman Allen Houk. The application process is far too comprehensive, though, for small loans of less than $25,000. "The process needs to be simplified for those smaller loans," he said.

Mayor Richard "Ike" Stage told The Record that while he didn't veto the ordinance to create the Town Center Loan Program, he chose not to sign it. Stage said he wasn't in favor of the lending program because it would put city money at risk. Lending money is something that's done by lenders, not by municipalities, he said.

"We don't have the expertise, particularly in the monitoring side," he said.

City council president Ted Berry, however, said the program has performed even better than he had hoped when he initially created and sponsored it. The program has fostered the creation and expansion of three businesses in three key vacant buildings in the Town Center area. "This incentive program will actually pay the city a return on its investment and facilitate the change that we need," he said.