HomeMy WebLinkAbout03-29-1988 Council Minutes
342
A special meeting of the Canton City Council was held on
March 29, 1988 in Council Chambers.
PLEDGE OF ALLEGIANCE OPENED THE MEETING FOLLOWED BY THE
INVOCATION GIVEN BY DONALD E. EDWARDS MAYOR.
Mayor Edwards asked for roll call at 5:30 p.m. Present
- Aldermen Zilly, Steck, Sarff, Meade, Bohler, May, Chapman.
Absent - Alderman Kovachevich.
PURPOSE OF THE MEETING: THE CONSIDERATION OF RESCINDING
RESOLUTION NUMBER 2026: A RESOLUTION DECLARING DEFAULT
IN INTERNATIONAL PLASTICS RECYCLING, INC., AND IN
DECONTAMINATION SYSTEMS, INC. ACCELERATING ALL NOTES GIVEN
BY INTERNATIONAL PLASTICS RECYCLING, INC. AND BY
DECONTAMINATION SYSTEMS, INC, TO THE CITY OF CANTON, AND
DIRECTING THE CITY ATTORNEY TO TAKE LEGAL ACTION TO PROTECT
THE CITY.
International Plastics Recycling Inc. President Jim Burke
requested this meeting after the council meeting of March
16 where the City Council passed a resolution declaring
default in IPRI and directing the city attorney to take
legal action to protect the city. Jim Burke presented
a list of the names and addresses of the companies they
are dealing with. He believes and is optimistic that a
positive change in the financial condition of IPR is about
to happen.
Company A is expected to invest from $300,000 to $1,000,000.
Company B is a firm in Phildelphia that is interested,
a presentation is being made to top management with the
recommendation to make a significant investment in IPR,
possibly up to $1.5 million. A reply is expected by March
25.
Company C a New Jersey investor is expected to make a
decision by March 31 with the maximum investment to be
$300,000.
Company D a Chicago investment banking firm has a client
who may be interested in a maximum investment of $500,000.
Expecting a reply by March 25.
Company E a maximum investment would be $1.5 million. A
reply is expected by March 31.
Private Investor is prepared to invest $50,000.
Our attorneys plan on completing a disclosure document
at the end of March or the first week in April. Once this
process is completed, we can proceed with stock sales
immediately to institutional and other accredited investors.
If we receive the $50,000 investment mentioned from the
private investor as anticipated, we expect to make a$10,000
payment to the city immediately thereafter. Also, hopefully
one or more of the Companies referred to from A thru E
will have infused additional capital into IPR, in which
case additional payments to the city would be immediately
forthcoming.
With respect to the judgement against IPR in favor of Svob
Enterprises, I spoke with Terry Svob, President, regarding
the judgement and he has agreed to meet with me early next
week to seek a resolution of this matter out of court. Mr.
Svob indicated to me that Svob Enterprises would like to
do business with IPRI in the future and I believe that
Svob Enterprises would be willing to release the judgement
provided a partial payment could be made in April and an
acceptable schedule for future payments could be arrived
at.
343
CONTINUED March 29, 1988
Although we have other companies we are dealing with and
that may invest in IPR, they are situations I believe will
not develop in the near future. We appreciate your
cooperation and forebearance with our situation. Although
nothing set forth is by any means guaranteed, IPR is
confident that if every one plays ball we will turn the
company around and become a responsible corporate citizen
furnishing jobs and being an asset to the community.
Alderman May told Mr. Burke that he has listened to this
for 22 years, are they going to do it, or not? Jim Burke
answered that he had told it like it is. I can't tell
you things are guaranteed and their going to fly, I'm telling
you like it is.
Mayor Edwards said the resolution passed on March 16 was
O needed to force the company into an agreement or at least
get their attention. Mayor Edwards told Jim Burke that
~ the city can go along for a sixty (60) day extension with
~ day-to-day status changes at the plant. This action can
= be placed before the council again should they decide the
~ action is required.
Q RESOLUTION - A RESOLUTION RESCINDING RESOLUTION NO. 2026.
First reading, read by title. Motion by Alderman Zilly,
second by Alderman Sarff, the resolution be adopted. Roll
call. AYES - Aldermen Chapman, May, Bohler, Meade, Sarff,
Steck, Zilly. NAYS - None. 7 AYES 0 NAYS 1 ABSENT. Motion
carried. Resolution being #2028.
ADJOURNMENT: Motion by Alderman Sarff, second by Alderman
May, to adjourn. Voice vote, motion carried. Council
adjourned at 5:46 p.m.
C Y CLERK
I '
~
APPROVED.
MAYOR