July 23, 2014 at 2:10 p.m.
JCDC had full control of EDIT loan (11/06/07)
By By TRAVIS MINNEAR-
Jay County commissioners said Monday they did not see or sign official documents before approving four taxpayer-funded loans worth $494,500 to a wireless Internet provider.
The money was loaned to Omnicity Inc. from the county's economic development income tax fund, with the first loan issued in October 2004. The company is now suffering financial hardship and is between six to nine months behind on payments for each loan, Bill Bradley, executive director of Jay County Development Corporation, said.
The company has repaid $44,401 of the principal amount, but is struggling to make interest payments, leaving the loan balance at $450,099.
Requests from The Commercial Review for copies of official EDIT loan records have been denied several times over the last two weeks. JCDC said it is reviewing the paperwork with its attorney to decide if documents are subject to public-access laws.
Commissioners said it is not part of their procedures to sign EDIT loan paperwork. They said JCDC was in charge of drafting legal work for the Omnicity deal, and the role of commissioners in approving EDIT loans is limited to accepting or denying recommendations of the county's EDIT Advisory Committee.
"We just put in the (meeting) minutes that we approve what the advisory committee recommends," said Commissioner Milo Miller Jr.
JCDC hopes to review the process for granting EDIT loans in the future. Bradley said he wants to eliminate "ambiguity" currently associated with loaning taxpayer funds and - partly as a result of the Omnicity ordeal - utilize more uniform procedures.
"This is a juncture where we should be able to look at things," Bradley said.
Miller, along with commissioners Gary Theurer and Faron Parr, said former JCDC director Bob Quadrozzi pushed heavily for Omnicity to start business in Jay County. Quadrozzi died in May.
"Bob's the one who came in and told us what the advisory committee recommended," Theurer said, adding he believes commissioners made the right decision based on the information presented to them.
Commissioners unanimously voted Monday morning to allow six months to pass before seeking action on the matter. The approved motion includes a stipulation that monthly "token payments" must be made by Omnicity. A dollar amount was not attached to the motion.
JCDC representatives met with commissioners Monday morning to discuss the EDIT loans.
They said they hope Omnicity can stay alive or be purchased by a more financially sound company.
The company provides wireless Internet service to 280 customers in Jay County, JCDC board member Ramon Loucks told commissioners. That number is well short of generating enough revenue to pay interest on the four loans.
A call requesting comment from a spokesperson for Omnicity was not returned as of 11:30 a.m. today.
Miller said he believes all is not lost in the economic venture with Omnicity.
He said he is bothered that money might not be repaid, but by bringing Omnicity into Jay County competition emerged in high-speed Internet access. Also, he added, he believes any money the county receives from the company is better than nothing.
Miller was a JCDC board member at the time the loans were approved. It was part of the organization's strategic business plan to bring high-speed Internet access to Jay County, he said, and Omnicity offered the most promising outcome when board members and commissioners reviewed information from several wireless Internet providers.
"That was the only way we could see (at the time) that we could get high-speed Internet," said Miller, emphasizing a high demand among businesses and individuals in Jay County for the service. "That's what everybody was crying for."
The original request for a $380,000 line of credit was made by Quadrozzi to commissioners on Sept. 27, 2004.
A week later, on Oct. 4, 2004, a notation was made in minutes of the commissioners' meeting that the loan would be given to JCDC, which would in turn then loan the funds to Omnicity.
On May 30, 2006, commissioners approved another $114,500 in loans to Omnicity, bringing the total amount to $494,500.[[In-content Ad]]
The money was loaned to Omnicity Inc. from the county's economic development income tax fund, with the first loan issued in October 2004. The company is now suffering financial hardship and is between six to nine months behind on payments for each loan, Bill Bradley, executive director of Jay County Development Corporation, said.
The company has repaid $44,401 of the principal amount, but is struggling to make interest payments, leaving the loan balance at $450,099.
Requests from The Commercial Review for copies of official EDIT loan records have been denied several times over the last two weeks. JCDC said it is reviewing the paperwork with its attorney to decide if documents are subject to public-access laws.
Commissioners said it is not part of their procedures to sign EDIT loan paperwork. They said JCDC was in charge of drafting legal work for the Omnicity deal, and the role of commissioners in approving EDIT loans is limited to accepting or denying recommendations of the county's EDIT Advisory Committee.
"We just put in the (meeting) minutes that we approve what the advisory committee recommends," said Commissioner Milo Miller Jr.
JCDC hopes to review the process for granting EDIT loans in the future. Bradley said he wants to eliminate "ambiguity" currently associated with loaning taxpayer funds and - partly as a result of the Omnicity ordeal - utilize more uniform procedures.
"This is a juncture where we should be able to look at things," Bradley said.
Miller, along with commissioners Gary Theurer and Faron Parr, said former JCDC director Bob Quadrozzi pushed heavily for Omnicity to start business in Jay County. Quadrozzi died in May.
"Bob's the one who came in and told us what the advisory committee recommended," Theurer said, adding he believes commissioners made the right decision based on the information presented to them.
Commissioners unanimously voted Monday morning to allow six months to pass before seeking action on the matter. The approved motion includes a stipulation that monthly "token payments" must be made by Omnicity. A dollar amount was not attached to the motion.
JCDC representatives met with commissioners Monday morning to discuss the EDIT loans.
They said they hope Omnicity can stay alive or be purchased by a more financially sound company.
The company provides wireless Internet service to 280 customers in Jay County, JCDC board member Ramon Loucks told commissioners. That number is well short of generating enough revenue to pay interest on the four loans.
A call requesting comment from a spokesperson for Omnicity was not returned as of 11:30 a.m. today.
Miller said he believes all is not lost in the economic venture with Omnicity.
He said he is bothered that money might not be repaid, but by bringing Omnicity into Jay County competition emerged in high-speed Internet access. Also, he added, he believes any money the county receives from the company is better than nothing.
Miller was a JCDC board member at the time the loans were approved. It was part of the organization's strategic business plan to bring high-speed Internet access to Jay County, he said, and Omnicity offered the most promising outcome when board members and commissioners reviewed information from several wireless Internet providers.
"That was the only way we could see (at the time) that we could get high-speed Internet," said Miller, emphasizing a high demand among businesses and individuals in Jay County for the service. "That's what everybody was crying for."
The original request for a $380,000 line of credit was made by Quadrozzi to commissioners on Sept. 27, 2004.
A week later, on Oct. 4, 2004, a notation was made in minutes of the commissioners' meeting that the loan would be given to JCDC, which would in turn then loan the funds to Omnicity.
On May 30, 2006, commissioners approved another $114,500 in loans to Omnicity, bringing the total amount to $494,500.[[In-content Ad]]
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