Hermitage Economic Development Commission has recommended that the city approve a $150,000 loan to help build a new warehouse and that the city look at restocking the fund that the loan would deplete.

Leali Brothers Excavating Inc., Hermitage, has proposed building a 50,000-square-foot warehouse on land it owns on the south side of Broadway Avenue for CCL Container.

CCL has expanded production to meet increased orders, but the extra product is taxing the capacity of local warehouse space the company leases.

Leali also has asked the Shenango Valley Enterprise Zone for a $150,000 loan toward the $651,000 project.

Commission members said they are concerned that, while the loan would be for 10 years, CCL has committed to only a three- or four-year lease. Leali has asked the company, which is headquartered in Canada, to add annual renewal options to the lease, officials said.