Provo » As workers were pouring tilt-up panels for Action Target's new Ironton factory, the Municipal Council approved financing for the project.

The council unanimously approved issuing $9 million in industrial revenue bonds Tuesday to build the Action Commercial Park. The Ironton project will house Action Target's firing-range equipment factory, which is currently in a residential neighborhood in the west-central part of the city.

Curtis said the loan was vital for his business, especially at a time when credit is tight. And it came at the right time for him.

"We didn't have time to wait to do the financing," Curtis said. "We've been under construction for two months."

But the loan is needed if Action Target plans to finish the construction and uphold its end of an agreement with Provo to relocate to the Ironton section of the city.

Under state law, the city can sponsor an industrial bond loan for small businesses that are seeking to expand. Brian Baker, the city's financial adviser, said Action Target is responsible for paying back the loan. The city is only a conduit for Action Target to get a better deal on interest rates.

"The city is completely inoculated from anything to do with a default," Baker assured the council.

The bond is not the only assistance the city is providing Action Target.

In July 2007, the city bought Action Target's current location for $3.3 million and sold the business 10 acres in the Ironton section for $1.1 million.

The agreement defers the land-purchase payments for 10 years, with the understanding that Action Target will build on the site and be ready to move in by Sept. 15, 2009. It also allows Action Target an option to purchase 10 more acres for $1.45 million in 10 years, with a chance to lower the purchase price $3,500 for every job created in excess of 120.

That bonus is capped at 100 new jobs, or $350,000.

Curtis said Action Target plans to have its building completed by June at the latest, and have 150 people working.

dmeyers@sltrib.com