Council approves loan for city projects

By TESA CULLI

tesa.culli@register-news.com

MT. VERNON — The City Council approved a financing quote from People’s National Bank to purchase various equipment and vehicles and a $120,000 revolving loan for an Idaho company to open a manufacturing facility in the King City during its regular meeting on Monday night.

According to City Manager Ron Neibert, the loan amount for the capital expenditures is $275,000 for a four-year term. Five bids were received from financial institutions, and three of them qualified under terms of the bid specifications — People’s National Bank, First State Bank of Dix and MidCountry Bank. First State Bank of Dix offered an interest rate of 4.75 percent; MidCountry Bank 4.7 percent and People’s National Bank 3.85 percent. Collateral for the loans was listed as a 2007 streetsweeper and two 2006 fire pumpers. The estimated closing date for the loan was listed within one month.

“People’s quote was about a quarter percent lower than I anticipated,” Neibert told members of the council.

Neibert said a portion of financing for the wastewater treatment had two bids submitted, one of which did not qualify under the specifications and the other was higher than expected. Neibert said he would be re-issuing the bid packages after making adjustments in an effort to get lower financing bids.

The council also approved a revolving loan in the amount of $120,000 for equipment to High Range Designs, LLC of Idaho, to expand its operations to Mt. Vernon. Neibert explained the company is not a retail operation but the company sells to wholesale customers.

“This is to ... get a facility closer to their East coast customers,” Neibert said. “The loan meets all the guidelines of the Revolving Loan program and its recapture strategy.”

Neibert also said the company put an estimate on new job creation at eight for the first year, but expects to expand to 30 employees within two years.

Under guidelines for the Revolving Loan program, which was started through a federal grant which was administered by what became the Illinois Department of Commerce and Economic Opportunity, the company had to provide another $120,000 as equity for the loan.

The business has leased property in the Fountain Place Industrial Park from businesswoman and city council member Mary Burgan, who abstained from the vote.

“I’m proud to be able to help bring a business to Mt. Vernon,” Burgan said following the meeting. “They are taking a leap of faith in moving a portion of their operations to Mt. Vernon and I’m proud we could provide them with a good place to locate.”

The terms of the loan is for seven years at 2.7 percent interest, which is paid back to the revolving loan, which has a balance of about $1.5 million.

In other business, the council:

Approved a preliminary and final plat for the B & G Subdivision at 14102 E. Loyola Road and approved rezoning one portion of subdivision from agriculture to primary residential and the other portion from agriculture to business to allow petitioner Harold Burwell to operate a classic car sales from the property;

Approved an ordinance ending the administrative fee ordinance regarding vehicle tows by police as allowed by law to $100;

Held a first reading on an ordinance granting conditional use for Nave Party Supplies to offer Penske Rental equipment on property at 401 S. 10th St.;

Held a first reading on an ordinance authorizing the sale of surplus lots;

Accepted a quit claim deed for property located in Outlot 2 of the Water Tower Place Subdivision which contains a retention pond; and

Approved an amendment to a Revolving Loan Agreement which has been approved with Triple L Holdings, LLC. The amendment does not change the city’s portion of the loan agreement, Neibert said.

In addition, Neibert told members of the council that those residents who have branches and trees down in their yard following storms that came through the area over the weekend may leave the debris next to the curb and Midwest Waste will pick it up during the next two weeks. Additional information for residents will be available later this week, Neibert said.

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