Loma Linda Takes a Chance and Gives a Local Business a Loan

Loma Linda’s Redevelopment Agency has taken a leap of faith and approved an $80,000 loan to help one local business owner stay in the city.

The council approved the loan to Stock All Services on Redlands Boulevard.

“It is the first time in my life I feel I have a relationship with a city,” said Gary Stockman, who owns the property and co-owns Stock All Services with wife Denise Stockman. “Things like this don’t happen to us.”

The money will be used to install a required sprinkler system in the two buildings on the property.

Stockman’s business occupies the back facility. They build and repair hydraulic systems such as ones found in lifts or ramps, city officials said. Employees work with oils and materials considered potentially hazardous, prompting the Loma Linda Fire Marshal to require the sprinklers, officials said.

Inland ATV uses the front building.

Council members voted unanimously to provide the loan. But the move was questioned in light of the fact that Redevelopment Agencies statewide are in danger of disappearing under Governor Jerry Brown’s proposed budget.

Some on the council wondered what recourse the city would have if the business failed.

“The payment of the loan is secured by the value of the property,” said Konrad Bolowich, the city's director of information systems. And the property is not underwater, it does have value, Stockman said.

City loans have been the subject of debate in several cities. Among them was a $500,000 loan made by the city of Norco to a Mazda dealership in 2009, as reported by The Press-Enterprise.

The business went under shortly after and the city lost its investment, according to the reports.

Stockman’s business however is not in financial turmoil, officials said.

“Business is up 48 percent over last year,” Stockman said.

Mayor Pro Tem Ovidiu Popescu pointed out that the loan was examined by the city’s executive committee.

“We were in agreement with staff recommendation,” Popescu told the council. “We felt that it was a worthwhile effort to assist our businesses in our community to ensure that they not only stay here, but they prosper.”

Stockman was confident. “Failure is not an option,” he said.

He said he’s been surprised by the outpouring of support and plans to continue to grow the business and even possibly hire as many as eight more employees.

“Without these guy’s (in the city) we would in bad shape,” Stockman said. “It makes me want to drive 10 times harder.”