MONROE - After losing about $120,000 in defaulted loans last year, the Monroe Revolving Loan Fund Committee started to get some good news for a change on Tuesday when it reviewed the status of four loans.
The sale of Barrett's Brick Cafe on 18th Avenue is pending with Woodford State Bank, with an offer of $125,000 from Russ and Nadine Brown, the owners and operators of Pancho and Lefty's. Along with the property, is an offer of $6,500 for the equipment.
The loan fund ranks below the bank in capturing any collateral on the property, but does have first collateral rights on the equipment. The selling prices were previously agreed upon by the bank and the committee.
The committee voted to accept the offer on the equipment and released its entitlement on all proceeds from the sale of the building. Committee members realized, months ago, that it stood to lose about $95,000 on the defaulted loans to the business and opted to have it written off. The equipment had been assessed at about $12,000, but Mike Doyle, committee chairman, said that assessment included a built-in exhaust hood that should have been considered part of the real estate.
The sale of a building on 8th Avenue that once housed the Koffee Bean coffee shop and CPP computers is pending. The city is relatively unsecured in collateral in the building; however, CPP Computers, the business, is not part of the sale. Payments on the loan are past due, but the owners, Hans Wampfler and Julie Stratman, indicated in a letter that they intend to continue payments. The loan balance stands at about $25,000.
Committee members saw no reason to stand in the way of the real estate sale, and voted to allow it.
"We are thinly collateralized," said member Steve Bechtolt. "If they elect to pay us any money going forward, all we can say is thank you."
Monroe Powersports, Inc. asked the committee to restructure the remaining $48,000 debt on its loan, which came due in mid-June. The loan is current and even paid ahead. The $120,000 loan originated in November of 1999.
The committee determined Monroe Powersports was an on-going business that is doing well, and voted to extend the term of the loan for up to 48 months, at 4.5 percent interest. The rate is less than the original loan at 5 percent, but more than new loans being approved this year at about 3.5 percent.
One loan is still pending. Bargains Galore is asking for a change in its primary lender. The loan for up to $20,000 was approved last month with First National Bank as the primary lender. City Administrator Phil Rath said the business is asking for Sugar River Bank to be named the primary lender. Also, committee members were unsure about the location of the business. The loan was pending the negotiation of a lease.
The committee asked for verification of the location of the new business and directed Rath to speak with Sugar River Bank about the change of lenders.
The committee meets at 4 p.m. July 12 at the city hall to review a new loan application for $8,500 and for a status update on the pending Bargain Galore loan.
The sale of Barrett's Brick Cafe on 18th Avenue is pending with Woodford State Bank, with an offer of $125,000 from Russ and Nadine Brown, the owners and operators of Pancho and Lefty's. Along with the property, is an offer of $6,500 for the equipment.
The loan fund ranks below the bank in capturing any collateral on the property, but does have first collateral rights on the equipment. The selling prices were previously agreed upon by the bank and the committee.
The committee voted to accept the offer on the equipment and released its entitlement on all proceeds from the sale of the building. Committee members realized, months ago, that it stood to lose about $95,000 on the defaulted loans to the business and opted to have it written off. The equipment had been assessed at about $12,000, but Mike Doyle, committee chairman, said that assessment included a built-in exhaust hood that should have been considered part of the real estate.
The sale of a building on 8th Avenue that once housed the Koffee Bean coffee shop and CPP computers is pending. The city is relatively unsecured in collateral in the building; however, CPP Computers, the business, is not part of the sale. Payments on the loan are past due, but the owners, Hans Wampfler and Julie Stratman, indicated in a letter that they intend to continue payments. The loan balance stands at about $25,000.
Committee members saw no reason to stand in the way of the real estate sale, and voted to allow it.
"We are thinly collateralized," said member Steve Bechtolt. "If they elect to pay us any money going forward, all we can say is thank you."
Monroe Powersports, Inc. asked the committee to restructure the remaining $48,000 debt on its loan, which came due in mid-June. The loan is current and even paid ahead. The $120,000 loan originated in November of 1999.
The committee determined Monroe Powersports was an on-going business that is doing well, and voted to extend the term of the loan for up to 48 months, at 4.5 percent interest. The rate is less than the original loan at 5 percent, but more than new loans being approved this year at about 3.5 percent.
One loan is still pending. Bargains Galore is asking for a change in its primary lender. The loan for up to $20,000 was approved last month with First National Bank as the primary lender. City Administrator Phil Rath said the business is asking for Sugar River Bank to be named the primary lender. Also, committee members were unsure about the location of the business. The loan was pending the negotiation of a lease.
The committee asked for verification of the location of the new business and directed Rath to speak with Sugar River Bank about the change of lenders.
The committee meets at 4 p.m. July 12 at the city hall to review a new loan application for $8,500 and for a status update on the pending Bargain Galore loan.