On the heels of Firefly Energy’s bankruptcy, another Peoria company that got loans from the City and County is not looking too good:
On March 22, 2010, Busey Bank filed Judgment orders against Globe Energy Eco-System LLC, David M. Jones and Joan Jones, totaling $7,938,676.81 with attorney fees reserved.
Ouch. Both the City and the County provided loans to Globe Energy:
Globe Energy hasn’t made a payment on its government assistance program loan from the county since Dec. 15, 2008, and owes more than $116,000, plus interest, on its $150,000 loan. The city is owed $141,775 on its $150,000 loan.
I suppose the silver lining is that this is significantly less than the $6 million the City and County combined may have to shell out due to their loan guarantee of Firefly, but it’s still an awful lot of taxpayer money down the drain if Globe Energy doesn’t pay up. And let’s face it, the chances of them paying up at this point are pretty slim.
I have to admit, I was excited about the promises made by Globe Energy when they first came to town. They looked like exactly the type of company we wanted — one that would add manufacturing jobs, and lots of them, which paid a living wage. Unfortunately, none of that ever came to fruition.
Now it looks like it may just be another pile of taxpayer money thrown down the drain. Merle Widmer gives a list of recent companies that have failed and left the City and/or County holding the bag:
Bad bets by the EDC who recommends these companies to the county, recently include In_PLay, River Station and FireFly and now, apparently Globe.
And, taking a look into my crystal ball, I would venture to say we’ll be able to add the downtown hotel to that list pretty soon if the City decides to go ahead and finance that as well. Only this project will impact City taxpayers more heavily than all the other failed projects put together, because this one isn’t for $150,000 or even $3 million, it’s for a whopping $37 million.
Bottom line: I think the City and County have proven they don’t have the chops to be in the venture capital business, and frankly, that’s not the purpose of municipal government anyway. They should stick to providing basic public services and stop financing private ventures.
For companies with … what?
You know, this theme doesn’t like quotation marks in post titles for some reason. I’ve had more trouble with it truncating titles… I guess I’ll just have to take them out.
I’m not good with numbers but how does one get a judgment order for “$7,938,676.81” when you are owed “$116,000, plus interest, on its $150,000 loan. The city is owed $141,775 on its $150,000 loan.” Or does that mean they owe the bank 7 mil and the city and county that other money?
But Yogi, what about Mr Ranger? Won’t he lose all his political influence and prestige if he can’t promise to bankroll people’s businesses?
Charlie — They owe the bank $7.9 million. Busey will have to get paid first before the City or County get paid back for their respective loans.
got it… so the city and county lent money to them AFTER they were already in debt $7 mil to the bank? How … generous.
funny how this company was found to be in financial troubles back in to atleast 2008, yet the owner and his son, could still be seen (until just recently?) driving around town like reckless idiots in $200,000 exotic sports cars. hm.
Meanwhile they invite more disaster from Google.
Vonster, how so?
Lets’ see, have someone stir up the torches and pitchfolks (fork ’em if u can), and storm ’em all in their castles till the publik is paid back…then stop electin’ them volk woo keep trying to sink the ship…send the big cat up a tree, and refurbish our infrastructures by providing sound technology jobs for google plans. Seize and sell off the old cats assets, to fund this effort for the publik benefit, before; repeat, BEFORE, they flee the county and country. Then send ’em to the showers. Winnow out the gold fillings and sell that to fund our town. History do repeat itself, right?