South West Illinois News

City of Red Bud Economic Development Commission met March 27.

Here is the minutes provided by the commission:

Commission Members Present: Clem Esker, Warren Frank, Rodney Nevois, Shane Watson, Larry Ingalls, Dan Koenigstein, Butch Stellhorn, Mike Reed

Commission Members Absent: John Tallman, Stuart Langrehr, Greg Birchler, Orvel Cox

Others Present: Susan Harbaugh, Pam Poetker

Committee Chairman Esker called the meeting to order at 6:25 p.m.

1. Financial Report

City’s Revolving Loan Fund Balance as of March 1, 2019 was $405,537.51

As of March 1, 2019 the balance in the Micro-Loan Program was $54,782.99

The CDAP RLF funds have all been returned to the State of Illinois per the guidelines set forth by the Department of Commerce and Economic Opportunity for the closeout process.

A report with detailed information on the existing loans was provided and reviewed by members.

2. Department of Economic Opportunity CDAP ROLF Program

a. Termination of Program

The program has been closed and following the closure of the CDAP RLF bank account, all funds have been returned and accounting for at DCEO. The City of Red Bud has filed for a grant for an electric infrastructure project for approximately 1,345,000.00. The city should know within the next 30 to 60 days if the application will be funded. At that point, DCEO will cut a check to the city for the cost of the project.

b. Grant Application

The City of Red Bud has filed for a grant for an electric infrastructure project for approximately 1,345,000.00. The city should know within the next 30 to 60 days if the application will be funded. At that point, DCEO will cut a check to the city for the cost of the project.

3. First Stage Fabrication

First Stage Fabrication has filed an application for a loan in the amount of $100,000. Scott and Terri Dilley were present at the meeting and provided a brief overview for the use of the requested funds. The money from the City would be used to fund part of a new electric punch press that is needed for the company to progress.

Motion made by Butch Stellhorn, seconded by Warren Frank to make a loan to First Stage Fabrication in the amount of $100,000 for a term of seven years at 1.5% interest with Life insurance, personal guarantees, and a second position on the equipment purchased all contingent upon approval of the Finance Sub-Committee. Motion carried.

Larry Ingalls voiced concern that he feels it is imperative that the commission be provided more time and information prior to the approval of loan applications.

Dan Koenigstein inquired about additional financial information and Pam Poetker confirmed with Scott Dilley that Stuart Langrehr at First Bank had his financial documents and that he had provided authorization for the information to be shared with the City’s Economic Development Finance Sub-Committee.

4. Potential Industrial Employer

Chairman Clem Esker reported that Mike Wiegand has purchased the former G & S Building and that he is working with a local resident on a business venture to be located in his building with the potential of 10 jobs initially with that number increasing to thirty and possibly even sixty jobs. Commission members will be provided updated information as it becomes available.

5. Micro-Loan Program

There is the potential for two loan applications for this program. Current fund balance is just over $54,000. Potential Loan recipients are aware that the loans are made on a first come, first serve basis.

6. Commission Members – Vacant Seat

Following the election, Mike Reed will continue to be on the commission as a local resident as he is not running for re-election as alderman. There is one vacancy on the commission. The city reached out to Roeslein about the company having a representative serve, but they didn’t think that they had that capability at this time. Anyone with a recommendation is asked to share it with Chairman Esker.

7. Existing Industrial Employer Updates

The city continues to see a lot of growth with the industrial employers in regard to work load and employees. Chairman Esker commented that the city has been very fortunate in regard to the employers we have and work that is available within our community.

8. Anything for the Good of the Order

There was some discussion about hosting a breakfast for industrial employers to share information regarding local incentives and to allow the owners to share some information on their company as well as network with others. Local lending institutions would also be invited to share loan program information with business owners. Shane Watson from Red Bud Regional Hospital offered to host the breakfast as well as cover the cost of food for the event.

Meeting was adjourned at 7:16 P.M.

https://www.cityofredbud.org/uploads/3/8/4/1/38410823/economic_march_27_2019.pdf