Save-A-Lot loan remains unpaid

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The city of Morris' position in regard to the Save-A-Lot property at Franklin and Washington streets will be discussed when the city council's Finance Committee meets at 6:30 p.m. Wednesday, July 15.

In February of 2003, the city council voted to make a $300,000 loan to Duane Martin and the D. N. M. Group for the Save-A-Lot store. The loan came from the Community Development Assistance Program, which is designed to assist businesses to create or maintain jobs.

Initiated with money from the state of Illinois, the progam makes loans, then uses the principal and interest payments collected over time to make new loans.

As is the case for all the loans, Save-A-Lot borrowed the money at 3 percent interest over 10 years.

No payments have been made on the loan since 2007.

According to city audits, yearly payments were $34,760 through the fiscal year ending April 30, 2006. The last payment of $12,000 was made for the fiscal year ending April 30, 2007.

According to the agreement, the loan was secured by "promissory note, mortgage and such other security as may be deemed reasonable and necessary. "

"The city has the top lien with the bank in Effingham," Mayor Richard Kopczick said.

The mayor said City Attorney Scott Belt will go over the city's position depending on what steps the owner of the property takes, including filing bankruptcy.

In 2008, Grundy County made a serious attempt to buy the property.

Grundy County Administrator Dan Duffy said that, over the long term, the county would probably continue to have an interest in the property, depending on what happens with the current owner.

"We made our offer, but the owner did not appear with a clear title," Duffy said. "We recorded our offer."

Duffy said the county will now wait to see whether the property goes into bankruptcy.

"We would still have an interest," Duffy said. "It makes sense to keep the legal system downtown and it provides a good anchor (for downtown)."

Although this loan is not current, the city still had $250,000 available in the CDAP loan fund on May 1, 2009. 

The D & S store closed in December 2002, after it was sold to Martin, and Save-A-Lot opened in February 2003.
 

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