HomeMy WebLinkAboutMinutes - 8/4/1993 - Revolving Loan Fund Committee MINUTES: REVOLVING LOAN FUND COMMITTEE
AUGUST 4, 1993
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Members Present: Chairman Cuda, Aldermen Bates, Bolger, and Locke.
Others Present: Alderman Lawson, City Administrator Peterson, City
Attorn.sy McArdle, Dan Curran, and Julie Sadlier.
Chairman Cuda called the meeting to order at 7:00 P.M. He announced the
purpose of the meeting was to review the collateral proposed to be
pledged for a $50,000 loan to Eco-Tech. The committee previously
reviewed this loan and recommended approval of the $50,000 loan request
contingent on procurring sufficient collateral.
Dan Curran, attorney for Joe and Julie Sadlier, indicated they wish to
pledge as collateral a granulator with a value of $77,000 to secure the
$SO,OOCO loan. He stated the City is in a good collateral position on
this lc�an. He indicated the County approved a $100,000 revolving loan to
Eco-Tech, which is secured by a $123,000 piece of equipment for which the
County has first position. Mr. Curran indicated the Sadlier's did not
want to pledge additional securities, as this would limit their ability
`'" to secure working capital from financial institutions for future
expansions. Ms. Sadlier stated she located the business in the City of
McHenry because of the helpfulness of City officials and the availability
of the revolving loan fund. She hoped to get approval of the $50,000
loan request at this meeting.
Chairman Cuda stated he wants to see the City make the loan and the
City's responsibility is to sercure the loan properly in order to provide
funds f�r other businesses.
Alderman Bolger explained the money comes from a DCCA grant and the money
is beiny; re-loaned to this company. He was hoping for an approval of the
loan fo:- this new business.
Alderman Locke thought this was a good business to be located in the
City, b�.�t was concerned about the collateral and the depletion of funds
(in the Revolving Loan Fund) to loan to other businesses.
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Alderman Bates expressed some concerns about the resale value of the
`- granulator. Ms. Sadlier indicated the resale value was $45,000.
Alderm�in Locke felt this is a loan the City can approve with the
collatf�ral that was pledged, and asked if we can take a second on the
County's equipment.
It was moved and seconded to approve the loan with the pledged granulator
as collateral, and with the permission of the County to place a second
position on the collateral that is being pledged for the County revolving
loan fund. The motion passed 4-0.
There being no further business to come before the committee, the meeting
was ad�ourned at 7:25 P.M.
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Gerald R. Peterson
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