Farrel Corp. Gets $1.75 Million State Loan For New Facility

FILEAnsonia’s Farrel Corp. will receive a $1.75 million loan from the state to help build its new headquarters in the Fountain Lake industrial park.

The loan comes from the State Bond Commission, and will be provided at a 2 percent interest rate over 10 years.

But the loan will be forgiven if the company meets the job retention and creation goals, according to a prepared statement announcing the loan from state Rep. Linda M. Gentile, state Senator Joseph J. Crisco, Jr., and Ansonia Mayor David Cassetti.

The company will retain 79 jobs and create five new jobs, the statement said.

The State Bond Commission approved the loan at its meeting in Hartford last month.

The company has been based in Ansonia for more than 150 years.

But its downtown headquarters — in more than 10 acres of buildings straddling the north end of Main Street — have sat mostly vacant for years.

Last year the company, now owned by a conglomerate based in Germany and renamed Farrel-Pomini, announced plans to move to a new facility in either Oxford or Ansonia.

In February, the company said it would build a headquarters in the Fountain Lake development if the city put up $1 million to build an access road off Birmingham Boulevard into the site. Aldermen approved the deal unanimously.

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City officials said they expect to get grants to pay for the road, but as of Tuesday had not yet heard back about whether those funds will be forthcoming.

Even if the grant applications are rejected, the city will remain committed to the road work.

FILEIn the prepared statement announcing the $1.75 million loan, Gentile thanked Gov. Dannel Malloy, who controls the State Bond Commission, for “for his continued commitment to manufacturing in the Naugatuck Valley.”

“He understands the importance of this once very vibrant industry and appreciates not only the economic impact of maintaining this company in our community, but also the historical significance of keeping this industry where its origin is,” Gentile said. “I would also like to thank the mayor and his economic development staff, and in particular Sheila O’Malley, for their commitment to economic development retention and expansion for the city.”

“Keeping Farrell in Ansonia means retaining and creating jobs in the Naugatuck Valley,” Crisco said. “An expanding Farrell Corporation is good for Ansonia and good for the future of manufacturing in Connecticut. I want to thank the Mayor, Rep. Gentile and the State Bond Commission for their collaboration on this project.”

Cassetti thanked Gentile and Crisco for helping Farrel get the loan.

“This has been a real team effort and we are thankful for their help,” Cassetti said in the statement.

Sheila O’Malley, the city’s director of economic development, echoed Cassetti’s sentiments.

“The State of Connecticut, the City of Ansonia and the federal government have teamed up to make this a reality,” O’Malley said. “We are saving jobs and retaining a 160-year-old company in our city. It can’t work without a real partnership.”

Comments

posted by: facebook100005547764548 on April 29, 2015  6:33am

Please tell me Ansonia won’t be left with yet ANOTHER ugly vacant factory building downtown! I can’t handle the ones it has, can’t find buyer or tenants for them and the only resolution is for the city to take ownership of them, tear them all down and HOPE they can sell the now vacant land to a developer. It’s the only way out of this mess..

posted by: Ken DuBrava on April 29, 2015  10:33am

Talking with many in the community, it really is a sad state of affairs this article and quite possibly the State commissions reveal when granting this loan. There are no conditions applied to the parent company contractually agreeing on a devasting clean up procedure prior to issuance of a $1.75 Mil loan agreement. All to reminiscent of a homowner trashing his home during a default notice on a bad loan.
Agree tax based business retention is an important balance alleviating local budget stategy challanges but equally devastating is this administration’s commitment to the downtown visual improvement plan. Without an aggresive-no second chance contract agreement in the company relocation process contigent to this given brownfield black hole, Ansonia really does not gain anything during this relocation process. What is more obvious, the continued loss toward economic improvement centered within the core of a blighted city. Paranoia had won over in this recent event while a hillside landscape was torn out from its natural purpose to an aggresive developer and a city sell out. Ansonia and the State local reps sat ringside contemplating the next black-eye blow to the city after the fact.
Agree with the above, know one can be bind to the fact this day forward Ansonia needs to completely remove the industrial injuries of the past to heal towards a successful future. Mr. Cassetti & Ms Gentile , Mr. Cisco and Ms. O’Malley the people only demand a plan away from the black hole that will be left this day forward ( ???? ) . The words difficult, obstacles, funding and political are not an option.