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Sandusky approves two economic development loans; one vote includes abstention amid public concerns
Summary
The commission approved a $150,000 substantial development loan to Korotkin Hospitality Group LLC and a $58,867 loan to RDMJD LLC under the city’s Economic Development Assistance Program; the Korotkin vote included one abstention and drew public questions about projected visitor numbers and return on investment.
The Sandusky City Commission on May 20 passed two ordinances authorizing development loans through the city’s Economic Development Assistance Program: a $150,000 loan to Korotkin Hospitality Group LLC for property at 207 West Washington Row, and a $58,867 loan to RDMJD LLC for property at 2101 West Perkins Ave.
Director Gilson explained the city’s guidelines require one job created for every $25,000 loaned; “that is what we hold them accountable for,” she said, describing why the Korotkin loan carries a requirement for six full‑time equivalent positions. Gilson also said the applicant provided projections that the venue would attract an additional 20,000 to 25,000 visitors per year based on event counts and related patronage.
Commissioners moved the Korotkin ordinance under suspension of the rules; the roll call recorded a majority in favor and one abstention by Commissioner Murray. The ordinance passed and was declared to take immediate effect under Section 14 of the city charter. The RDMJD loan was moved and approved by roll call with affirmative votes recorded.
Members of the public urged more scrutiny. Talib Garrett (512 Scott Street) and a later commenter using the name West Poole (1939 East Olgate) questioned the loan terms and the city’s expected return, arguing the projected visitor figures and the employment numbers were insufficient to justify public investment. At the podium, a resident said the city would receive only “13 cents…back from a dollar” under the stated projections. The commission did not change the loan terms during the meeting; Director Gilson said the job requirement follows established guidelines and that the applicants reported the higher employment figures but that the city’s minimum was six positions.
Commissioners and staff noted new program safeguards compared with older grant programs, including a clawback provision that allows the city to require repayment if obligations are not met; staff said forgiveness of the loan would be considered only if the borrower met the agreed obligations over a five‑year period. Commissioner supporters cited the applicants’ local business track records and the role of the loans in attracting private investment and enabling grant competitiveness.
