LORAIN — For the third time this year, Mayor Tony Krasienko exercised his veto power, rejecting City Council’s Nov. 2 decision to take $25,000 from the safety forces and give it to the Lorain Growth Corp.

“The city of Lorain is facing a revenue crisis, and funding of essential safety forces, i.e. police, building or fire, must be the utmost priority at this time,” Krasienko wrote in a letter to Council dated Nov. 12.

For the first time, public safety was to receive Community Development Block Grant funds totaling $70,460, said city Auditor Ron Mantini. But Council voted to take $25,000 of that and give it Lorain Growth Corp.

Krasienko also said the money is needed in house for “ensuring the safety of residents and meeting housing standards to prevent further deterioration of Lorain’s neighborhoods.”

Lorain Growth Corp. is an organization of businesses and individuals who strive for economic development by trying to bring new businesses into the county and keep existing businesses here as well.

Councilman Mitch Fallis, D-at large, supported giving Lorain Growth Corp. the $25,000, citing the need to replace former Executive Director Michael Challender, who left Lorain Growth several months ago.

“I don’t know where else the city of Lorain can make a $25,000 investment and receive an 80 percent return on that investment,” Fallis said. “In this particular situation, if we fund Lorain Growth Corp. for $25,000, it’s my understanding the county commissioners will fund that position with an additional $20,000.”

Krasienko said in his letter that Lorain Growth Corp. “has not presented a formal report to Lorain City Council detailing how past subsidies were utilized and the results.”

The letter goes on to say Lorain Growth Corp. “lacks focus and lacks direction” but does urge Council to reconsider funding once Lorain Growth has finished “redefining their mission and goals.”

A phone call to Lorain Growth Corp. wasn’t returned.

Lorain Growth Corp.’s mission is to bring businesses into Lorain’s downtown and waterfront areas — a slightly different focus than the city’s Community Development Department, according to Fallis.

“If that position isn’t funded, there’s no chance of a person being responsible for bringing new businesses to downtown and fostering economic growth in downtown,” Fallis said.

Council voted 6-5 in favor of the ordinance. Unless Council overturn’s the veto, the $25,000 will go back for public safety.
Krasienko did not return a phone call seeking comment.

Contact Alicia Castelli at 329-7144 or acastelli@chroniclet.com.

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