Local Economic Developments include this statement from Peoria County dated 9/20/07, "On September 11,2007, First Bank filed a foreclosure and listed InPlay, LLC: Edward Lee Hoffman; Michael L. Stessman, Sr.; James R. Grube; City of Peoria; PJ Hoerr, Inc. and the County of Peoria as defendants. The defendants have 30 days to provide a written response. On May 6,2003, a Peoria County Gap Loan was issued for $150,000.00. Peoria County has a shared collateral subordinate position with the City of Peoria on a mortage, promissory note and personal guarantees. InPay's current balance (with Peoria County) is $105,739.49. Past due amounts is $5,793.64 which reflects amounts due since June 1, 2007".
The County makes loan decisions based on info submitted, yet none of us have ever acted in the position of loan officer at any lending entity. And as usual the banks have first position on recovery of any loan declared in default, for any equipment leased, the lessor may reclaim. All governmental lending agencies (taxpayers money) come last.
The large majority of the borrowers of Gap Loan money do pay off their loans. We do turn down a very few loan requests because they come on the recommendations of EDC and naturally on the recommendations of the banks but they do take the first position on financial recovery if the loans go bad. The interest we charge is usually between 3 and 5 per cent. Until very recently, we were not assessing a penalty for past due amounts. You can bet the banks do.
We should all hope InPlay is able to work their financial problems out for their sake, the sake of the communities economic development of the downtown and the sake of the taxpayers.
On a more positive note, I note that the long empty furniture store building between Lake and Glen is being remodeling into a financial institution and the old Thompson Grocery store on Knoxville is being remodeled into a doctors office (at times I note the remodeling job has been picketed by unions) and other to be leased space. Let's hope that tax PAYING businesses will eventually locate in the empty Menards building the K's Merchadise building and the long vacant old grocery store on far North Knoxville.
I note some other new buildings under construction including one off Monroe Street in the near north downtown area. Hope they are all tax paying bodies rather than like so much of the construction underway or proposed that are tax COLLECTING bodies.
Big difference to those of us who pay taxes.