Commission approves $250,000 economic-development loan to Toft Dairy for freezer expansion

The Sandusky City Commission voted March 24 to authorize a $250,000 substantial development loan through the city's economic development assistance program for Tof Dairy Inc.'s expansion at 3717 Venice Road.

Colleen Gilson, presenting to the commission, said the project is a roughly $7,000,000 expansion to replace or enlarge an aging freezer and increase the company’s capacity for seasonal demand. “The owners have secured credit facilities from KeyBank and have a commitment of a $2,500,000 loan from JobsOhio and are providing 10% equity investment in the project,” Gilson said. The company requested a $250,000 loan at 0% interest, payable at the end of five years; the loan would be secured by a subordinate mortgage on the property.

Gilson told commissioners the economic development incentive committee reviewed and approved the recommendation on March 11. She said the requested city loan exceeds the stated cap in the guidelines but that the guidelines allow exemptions for catalytic projects. Staff noted the city investment would represent about 3.5% of the total project cost.

Under the terms presented, if the owner hires seven full‑time employees by the end of the loan term they may request forgiveness. Commissioners expressed support for the project’s local economic effects. The commission adopted the ordinance under suspension of the rules; a roll call recorded unanimous support from commissioners present.

The ordinance directs the city to execute the loan documents, secure the loan with a subordinate mortgage on the property at 3717 Venice Road, and monitor job-creation commitments as tied to any forgiveness request.