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HomeMy WebLinkAboutMinutes - 8/4/1993 - Revolving Loan Fund Committee MINUTES: REVOLVING LOAN FUND COMMITTEE AUGUST 4, 1993 � 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. � 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. � � ��,L, �!i'�• /�G�Z�c� Gerald R. Peterson � �