LISBON -A business-assistance arm of the county commissioners will look for state money to help area grocer Henry Nemenz with plans to expand his Wellsville supermarket into a shopping plaza.

The Columbiana County Community Improvement Corp. (CIC) board agreed at its meeting this week to provide whatever support it can for Nemenz's $2 million project. This includes having commissioners apply for an economic development grant from the Ohio Department of Development.

Pam Dray of the county economic development department said before any application is made she will contact the state to get approval to proceed and determine how much, if any, grant money is available. Nemenz intends to seek between $300,000 and $500,000 from the state, depending on what is available.

Dray said there is a very real concern among CIC members the pot of money might be dry.

"They are just worried the state doesn't have the money to pass out for this program like it did before, but we'll see," she said.

Nemenz owns the Save-A-Lot supermarket in Wellsville, and in July he announced plans to build a new and larger supermarket on the property, and turn the existing grocery into a plaza that would include a bar/restaurant, coffee shop/deli/bakery, pharmacy, state liquor store, and banquet hall.

The project would help retain 40 jobs and create 35 new positions.

Dray said Nemenz originally requested a $250,000 loan from the CIC, but there is a balance of only $138,848 in its small business revolving loan fund. She anticipates the CIC will contribute to the project at some level.

In other business, Dray reported three of the five recipients of CIC business loans are current. The two businesses that defaulted on loans were the former Calcutta Chrysler Jeep Dodge dealership and owners of the former Cinnamon Moon Bakery & Tea Co. The dealership was loaned $112,500 in 2005 but closed two years later, with $99,755 still left unpaid. The bank reportedly has a potential buyer for the closed dealership property, and Dray said the CIC holds a second position on the lien and may be able to recover some money if it is sold.

Cinnamoon Moon, located in Lisbon, was loaned $39,990 in 2005 but closed shortly after it opened the following year. Dray said the owners filed bankruptcy and the CIC received only $3,792 from bankruptcy court.

tgiambroni@mojonews.com