Last updated on 2011.10.07
Does anyone ever tell the LAIC no? Commissioner Nick Abraham does. Last night, after finally ironing out the "clerical errors" (like neglecting specify how much the LAIC would pay each month), the city commission approved giving the LAIC more time to pay off its municipal loan for the Heartland Technology Center. Abraham was the only commissioner to vote against the extension. Perhaps when Commissioner and LAIC baord member Karen Lembcke said that the LAIC has the cash to pay the loan back now but doesn't want to be put in a stressful financial situation, he thought, "Stressful financial situation? Welcome to the world of my constituents."
Chuck Clement reports, somewhat obscurely, that local resident Steve Sanchez also attended the meeting to ask commissioners if they were "comfortable" with the amendment plan. Parsing Clement's prose, Sanchez appears to have suggested at last night's meeting that the LAIC is leading us up the same creeek as all those speculative homeowners who bought more than they could afford and crashed the national economy. According to Clement, the commissioners "assured Sanchez that the technology center had renters who were providing income for making loan payments."
Yes, we know they have renters and income; the question is, do they have enough? Mr. Sanchez, if you're out there, the Madville Times audience would love to hear more of your thoughts on the topic.
In related news, anyone who'd like to join Abraham on the commission in trying to hold the LAIC to the same rules of accountability as the rest of us will have their chance: KJAM reports petitions to run for city commission will be available January 28! Two terms expire this year: Commissioners Dick Ericsson and Scott Delzer. Madison neighbors, now's your big chance to be the government!
It seems to me that the loan has acceptable collateral and that this could potentially lead to economics development. However, I am somewhat concerned that there may be fewer renters in the near future. Once the building in the TIF district is complete, won't one of the major renters be moving out of that building for their new home?
I certainly agree that the businesses started at the tech center so far have been good for the community. Note, of course, how many of those wouldn't exist without the public resources of DSU. And this deal, with higher interest rates and monthly payments, at least kicks the repayment process into gear. But yes, with SBS moving out, I wonder whether the building will be able to generate more income than it currently does.
The LAIC doesn't want to be put in a stressful situation??? Guess they weren't concerned about being put in a stressful situation when they gave $5,000 to be used to promote the new gym/renovation project.
Thanks, Nick, for serving on the city commission.
As part of the city's funding of the LAIC, does it require a member of the commission be on the board of the LAIC for some type of financial oversight on behalf of the city or is Karen Lembcke on the board of the LAIC independently?
If Karen Lembcke's roll on the LAIC board is to act as an agent of city, I understand. But if not, does her voting on the loan represent a conflict of interest?
Brett, I believe Karen is on the board as an Ex-Officio, much as Commissioner Abraham is on the Chamber board.
Thanks Matt. Good to know. I knew all commissioners had other board duties - didn't know if this was one of those are not. I withdraw any thoughts of conflict.