HomeMy WebLinkAboutMinutes - 6/21/1993 - Revolving Loan Fund Committee MINUTES: REVOLVING LOAN FUND CONA'IITTEE
JUNE 21, 1993 7:00 P.M.
� Members Present: Chairman Cuda, Aldermen Bates, Bolger, Locke.
Others Present: City Administrator Peterson, City Attorney McArflle,
Julie Sadlier, Joe Sadlier.
The meeting was called to order at 7:10 P.M. by Chairman Cuda. The
meeting was held at the facility of Eco-Tech Ltd. Partnership at
4004 W. Dayton Street. The purpose of the meeting was to review a
$50,000 loan request from Eco-Tech from the City's revolving loan
fund.
Julie and Joe Sadlier began by explaining the process and technology
which will allow them to manufacture plastic pallets and be
competitive with the wooden pallet industry. They view the benefits
of plastic pallets to be diversion of plastics from landfills,
longer life expectancy of the pallet, and less damage from misuse.
Mr. Sadlier explained Eco-Tech is currently in the process ' of_„
seeking patents on some of their innovations in processing and are
`' hoping to trademark the terms "eco-wood" and "eco-pallet" for their
plastic pallets. They anticipate diversion of 45,000,000 pounds of
plastics from area landfills yearly at full production.
Mr. Sadlier explained the types of plastic that are used as raw
materials to manufacture their pallets. He indicated a strong
interest and commitment from ma3or companies for the purchase of his
pallets for $15.00 each compared to a cost of $40-$50 for wooden
pallets. He explained their raw materials would come from Waste
Management, Polymer Color, Chroma Color, and Sangewald USA. After
this presentation, Joe and Julie Sadlier conducted a tour of their
facilities. After this tour and questions, the meeting was recessed
to the Council Conference Room at 333 S. Green Street. Mr. and Mrs.
Sadlier were not present at this reconvened meeting.
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Revolving Loan Fund Committee
June 21, 1993
Page 2
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After discussion about the merits of the $50,000 loan request for a
3% rate over five years, it was moved, seconded and unanimously
agreed that the Committee would recommend Council approval of a
$50,000 loan to Eco-Tech, conditioned upon the following:
1) $50,000 loan payable over 5 years, at an interest rate of 4%
the first 3 years, 5% the fourth year, and 6% the fifth year;
2) No pre-payment penalty;
3) The appLicant to pay all attorney and processing fees;
4) Personal guarantees on the loan be secured from Joe and Julie
Sadlier;
5) Adequate collateral be pledged to secure repayment; and
6) The City work with the applicants in obtaining a $100,000 loan
through the State Department of Commerce and Community Affairs'
CDAP program.
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There being no further business to come before the Committee, the
meeting was ad�ourned at 9:30 P.M.
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Gerald R. Peterson
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