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.
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Pamela J.AIt ff, City Cler