MINUTES OF THE SPECIAL MEETING

AUGUST 31, 2009





Mayor Thomas F. Jones called the Special Meeting to order on

August 31, 2009 at 6:15 p.m. The pledge of Allegiance was recited. Present on roll call were Gary L. Wise, Marilyn Sisson, Pat Timmons, Harold Ellinger Jr., Gary Law, Robert Ostendorf, Gene Cailey and William Dees.



Attorney Dean Krone, who is employed by the City of Litchfield to represent them in the Schutt negotiations addressed the Council. The City and Schutt have been working on a proposal and the general plan is as follows:

-the City is to borrow $5 million to build an addition to the existing Schutt Building and pay for relocation of equipment.

-Schutt keeps 200 full time jobs in the Litchfield plant and creates an additional 100 full time permanent positions.



The Agreement drafted is a loan to Schutt over 10 years and Schutt will be forgiven some part of the loan each year depending on number of jobs created. If Schutt fails to produce jobs the amount forgiven is reduced and term of the loan is extended. Three hundred jobs is the baseline expectation. At end of 15 years, Schutt would pay the balance at that time.



No final agreement has been reached between Schutt and the City of Litchfield. The items still in discussion are as follows:

-loan agreement and security considerations



The EDC and the Banks were going to recommend an agreement at tonight's meeting but Schutt was not in favor in the agreement and has asked for continued negotiations.



The EDC Chairman, Paul Osborn recommended Schutt Sports written request for an additional 7 days to negotiate.



A motion was made by Timmons, seconded by Dees and Osterndorf simultaneously to follow the EDC recommendations and grant an additional 7 working days from 8/31/09 to negotiate. Motion carried on a roll call vote.

Yeas: Wise, Sisson, Ellinger, Timmons, Law, Ostendorf, Dees, Cailey

Nays: None.



A motion was made by Dees, seconded by Timmons to discussion of an ordinance modification to the City of Litchfield budget to authorize accepting the 1/2 % sales tax collections approved in the April 2009 City of Litchfield referendum. Motion was carried on a roll call vote.

Yeas: Wise, Sisson, Ellinger, Timmons, Law, Ostendorf , Dees, Cailey

Nays: None.



Item #3 on the agenda, the discussion of an ordinance modification to the City of Litchfield budget to authorize an Economic Development Agreement between Schutt Sports, Inc., and the City of Litchfield will be put on hold for 7 days to continue negotiations.



There being no further business a motion was made by Alderman Ellinger seconded by Alderman Timmons to adjourn the meeting. Motion carried. The Special City Council Meeting adjourned at 6:29 pm.











Approved,

Thomas F. Jones

Mayor

Attest:

Denise Meier Lueker

City Clerk