HomeMy WebLinkAbout09-08-1986 Special Council Minutes
A special meeting of the Canton City Council was held on
September 8th, 1986 in Council Chambers.
PURPOSE OF THE M$ETING: To consider and take final action
on:
IPRI Loan Application
Advanced Electronics Loan Application
All matters ancillary to or attendent
to the foregoing.
Mayor Edwards asked for roll call at 6:00 p.m. Present:
Aldermen Kovachevich, Zilly, Steck, Sarff, Workman, Bohler,
May, Chapman. Absent: None.
David Leezer gave a brief update on the HHS Funds. About
three years ago the City of Canton received about $1 million
from the federal government known as the HHS Funds. This
was to be paid in a thirty year period, and the interest
rate at 7z~. The money is being used for Economic Development
purpose. CIC has been loaned $400,000, LaRoma Pizza $37,500
and IPRI $99,999.
The Department of Health and Human Services has had this
project taken away from them. Farmers Home Administration
will be administering the funds.
Mayor Edwards said that at the present time we have $300,000
in this fund, and under the agreement with CIC we should
receive from them some $200,000 very shortly.
On the monies we have invested, were drawing as much as
were paying out.
We have a request to use some of these funds from Advanced
Electronics, which is the former employees of Keith Electric.
Mayor Edwards said he wants council to consider if you want
to keep the funds in use and loan outside the Enterprise
Zone? Mayor Edwards said he wants to loan for economic
development.
Motion by Alderman Sarff, second by Alderman Chapman, to
remove the restrictions of the federal loan fund being just
for the Enterprise Zone and make the funds available city
wide. Discussion. Alderman Zilly stated that it would
give us more money loaning it out, so that helps her make
a decision. Roll call. AYES - Aldermen Chapman, May, Bohler.
Workman, Sarff, Steck, Zilly, Kovachevich. NAYS - None.
Motion carried.
The Loan Committee reconvened to consider the loan request
of Advanced Electronics.
Motion by Jim Malmgren, second by Ron Jansen, ta recommend
positive action on the loan to the City Council. Voice
vote, motion carried.
The Loan Committee then adjourned.
Roger and Rosalie Swango attended the meeting.
Roger said the business will stay basically as it has been.
Its a four women owned company, three of which are wives
of former Keith Electric employees. The business is located
at 663 South 5th, which has been appraised at $15,000.
Mayor Edwards reported that $55,000 has already been committed
from the county, $16,000 from personal funding and $15,000
from CSBG. The firm would be owned by Julie Dav.is, Rosalie
Swango, Cheryl Fawcett and Karen Keith.
75
CONTINUED
Motion by Alderman Chapman, second by Alderman May, the
loan to Advanced Electronics be approved. Roll call. AYES
- Aldermen Kovachevich, Zilly, Steck, Sarff, Workman, Bohler,
May, Chapman. NAYS - None. Motion carried. 8 AYES 0 NAYS
0 ABSENT.
Motion by Alderman Chapman, second by Alderman Zilly, the
mayor and city clerk execute the standard document and upon
execution of that document togather with Advanced Electronics
presentation to the city of their mortgage, and the mortgage
be satisfactory to the city, the loan be disbursed. Voice
vote, motion carried.
RESOLUTION - APPROVING A$10,000 LOAN TO IPRI, APPROVING
THE FORM OF SECURITY: ESTABLISHING CONDITIONS FOR
O DISBURSEMENT. First reading, read by title. David Leezer
~ Community Development Director stated that the city last
week held discussion with IPRI. They explained that Wellman
~ Industries of Johsonville, S.C. will be purchasing IPRI.
_
m Mayor Edwards said IPRI had no intentions of selling at
a first, but they exhausted their funds.
David Leezer said that the $10,000 loan will allow that
business the funds needed to translate their plastic
processing techniques in to nine foreign languages patent
applications. The legal office stated they will not request
payment of legal fees at this time.
The recommendation from the Loan Committee is to use $10,000
~
from the DCCA roll over funds to loan to IPRI. And to mature
within three months from the date of disbursements of funds
and to bear interest at the rate of 10~ annum.
Mayor Edwards said that Wellman Industries currently recycles
plastic bottles into polyester and then uses that polyester
for fabrics and other products. Wellman has attempted to
create a process to remove saran coating from other plastics,
but has not been successful because the process left a
gum-type residue in the machinery. IPRI had developed the
only successful saran-removal system. The bottling industry
is expected to begin coating plastic bottles with a saran
film which will add shelf life to carbonated beverages and
retain taste and flavor in other products.
The patents themselves would actually be transferred to
the city. That is to say the city would become the owner
of the patents, for so long as there's money being owed
on this loan. As soon as the loan is paid off we would
be obligated to transfer title to the patents back to the
individual corporation which now holds title.
Motion by Alderman Sarff, second by Alderman Kovachevich,
the resoluton be adopted. Roll call. AYES - Aldermen
Chapman, May, Bohler, Workman, Sarff, Steck, Zilly,
Kovachevich. NAYS - None. Motion carried. 8 AYES 0 NAYS
0 ABSENT. Resolution being #1178.
ADJOURNMENT: Motion by Alderman Sarff, second by Alderman
May, to adjourn. Voice vote, motion carried. Council
adjourned at 6:54 p.m.
ITY CLERK
APPROVED . ~~~1~z~ ~--.Lw~'z~,-~
M~YOR