Litchfield City Council

Minutes of Adjourned Meeting

Thursday, September 10, 2009







Mayor Thomas F. Jones called the Adjourned Meeting to order on September 10, 2009 at 6:15 pm. The Pledge of Allegiance was recited. Present on roll call were Gary Wise, Marilyn Sisson, Harold Ellinger, Jr., Pat Timmons, Robert Ostendorf, Gary Law, William Dees and Gene Cailey.



Mayor Jones asked Dean Krone, the Attorney hired by the City to handle the Schutt proposal to speak. Attorney Krone advised that even with the 7 working day extension on the negotiations, there has not been an agreement reached between Schutt and the City of Litchfield. There are 2 important obstacles:

-Security-the City has asked for first lien on the property it is giving the 5 million to build. Bank of America has the first lien for all property present and future and will not relinquish first lien.

-Jobs-the number of jobs Schutt was to provide to the community in order for loan to be forgiven. The baseline number was 301 permanent full time positions. If more jobs as created, a bigger portion of the loan is forgiven, if fewer jobs are created, more of the loan would need to be paid back. Schutt is asking credit for part-time employees.

The staff of the City of Litchfield and the EDC cannot recommend an agreement with Schutt.



Alderman Law asked if negotiations would continue. Krone replied that the City and Schutt are at an impasse. If Schutt would like to open negotiations again, the City would listen but for now we are will to listen to new proposals from other businesses interested in the City.

City Attorney Hantla addressed the council and advised that the 1st mortgage is essential and that decision is in the hands of Bank of America.

City Administrator Ritchie advised they gave Schutt multiple options and the City is out of ideas.

Alderman Cailey thanked the Schutt employees for helping with the Sales Tax increase.

Alderman Timmons would like to keep the lines of communication open and also look into new proposals with other businesses.

Alderman Ellinger thanked the staff, EDC, and Bank Representatives for their time and resources.



Alderman Timmons made a motion to adjourn the meeting, seconded by Alderman Dees, the meeting adjourned at 6:30 pm.



Approved:

Thomas F. Jones,

Mayor





Attest:

Denise M. Lueker,

City Clerk