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.