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HomeMy WebLinkAboutMinutes - 9/15/1998 - Revolving Loan Fund Committee � REVOLVING LOAN COMMITTEE MEETING September 15, 1998 Members Present: Alderman Murgatroyd, Alderman McClatchey Absent: Revolving Loan Chairperson Mayor Cuda, City Attorney McArdle, Alderman Baird Others Present: City Clerk Althoff, Alderman Glab, City Administrator Lobaito In the absence of Revolving Loan Chairperson Mayor Cuda, Finance Chairperson Alderman Murgatroyd opened the Revolving Loan Committee Meeting at 7:50 p.m. Alderman Murgatroyd noted the absF;nce of Revolving Loan petitioner Joseph Rubino, Chairperson Mayor Cuda and City Attorney McArdle. He requested the committee consider recessing the Committee Meeting to Wednesday, September 16, 1998 at 7:00 p.m. in the Alderman's Conference Room of the Municipal Building permitting the attendance of the petitioner and other committee members. Some discussion followed regarding Alderman Murgatroyd's request for clarification regarding the petitioner's outstanding bank notes in the amount of 542,000 and S50,000. City Administrator Lobaito, in response to Alderman McClatchey's inquiry, stated loan interest rates were charged on an increasing sliding scale. For example Eco-Tech's loan had an interest rate of 4% the first three years, 5% during year four and 6% during year five. The prime rate is currently 8.5%. City of McHenry investments are currently obtaining a minimum interest rate of 5% \... City Administrator Lobaito also noted a current title report on the proposed collateralized property had bEen received which reflected only an outstanding mortgage of 590,000 which has been paid down to $76,000. Staff is proposing the City of McHenry take a subordinate position behind the mortgage holder, First Midwest Bank of McHenry. The property value has been appraised for approximately 5260,000. Some discussion followed regarding the proposed revolving loan's term and interest rate. City Administrator Lobaito was directed to obtain further information from area financial institutions regarding economic development low interest rate loans, specifically current interest rates. It was the concurrence of those committee members present the loan's term should be no more than five years but could be amortized for twenty or twenty-five years with a balloon payment in year five. Motion by McClatchey, seconded by Murgatroyd to recess the Revolving Loan Committee Meeting to Wednesday, September 16, 1998 at 7:00 p.m. in the Alderman's Conference Room of the Municipal Building. Voting Aye: McClatchey, Murgatroyd, Voting Nay: None Absent: Cuda, McArdle, Baird Motion carried. The meeting was recessed at 8:10 p.m. �.. ``- _ �I � Pamela J.AIt ff, City Cler