ALDC / ELCO LOAN Document (FOIL)

by D.H.

Since the Meeting at which I informed the Mayor that the ALDC did have to answer foil requests I have received some of the requested information from the ALDC’s Attorney, Alexander Betke II .

In the information I received is a copy of the LOAN Document between the ALDC and ELCO dated Sept 28th 2007. This document is a Promissory Note indicating that the Borrower: ELCO ELECTRIC LAUNCH, INC., 21 South Water Street, Athens, New York 12015 will pay $297,040. Together with interest at the rate of 3% per year to the Lender: The ATHENS LOCAL DEVELOPMENT CORPORATION, 2 First Street, Athens N.Y. 12015

It is signed by the Borrower: Robert Lievense, CEO of Elco Electric Launch, Inc.

The repayment of this loan is to take place by monthly payments of $2867.85 from ELCO to the ALDC starting on Oct. 1st , 2007 and continuing on the 1st of every month through Sept. 1st 2017.

Included in the FOIL Request Documents are ALDC Bank Statements which show a check # 95 from the ALDC to National Bank of Coxsackie for $297,000. Dated 10-19-07 signed by Robert Smallwood and a second indistinguishable signature.( presumably this is the LOAN money paid out to ELCO.)

In these bank statements 12 payments of $2867.85 are shown as being deposited into the ALDC’s account between Oct 1st 2007 and April 2009. This would mean that ELCO is approx. 7 payments in arrears. This amount would be approx $20,074.95 that ELCO is behind in payments. A violation of paragraph.-15, sec. (a) of the Loan Document? This LOAN was for the retention and/or creation of approx 33 jobs and ELCO has not fulfilled that obligation. The Mayor has stated that ELCO has another year to fulfill their obligations for job creation. Since funds must be spent on targeted items only (according to the Community Block Grant Regulations) has the ALDC demanded proof that the funds were spent according to these provisions as stated in paragraph 15 section(h) of the Loan Document?

From Reading the LOAN Document it seems that ELCO is in default on more than one issue as of now and that any leniency which they are being shown by the ALDC is solely because the ALDC has decided to be lenient and not to begin foreclosure proceedings against ELCO.

The Collateral listed for the $297,000. Is the following: All of the Borrower’s now or hereafter owned or acquired wherever located: accounts receivable and all finished boat inventory.

Some questions are brought to mind:

• What was the $297,000. spent on and by whom was it spent ?
• If ELCO is not currently building boats then would it follow that the more time that goes by the less collateral there will be?
• Has there been a suspension of ELCO’s operations in Athens in violation of Paragraph 15, section f?
  
• Does ELCO own any finished Boats?
• Does ELCO have any Accounts receivable?
• The Mayor says ELCO is still trying to create Jobs this should indicate that the Mayor knows how they are attempting to go about this. How and where are they trying to fulfill the job creation requirements?

Since the Village taxpayers may ultimately become liable in some way for this debt ….you may want to contact the Mayor for answers.

NOTE: Mr. Robert Lievense with his wife Judith are listed on the ELCO website as the owners of ELCO ELECTRIC LAUNCH, INC., we believe him to be the same Robert J. Lievense who has until recently served as Chairman of the Board of the Trudeau Institute a Bio-Medical Research Laboratory in Saranac Lake N.Y. visit their web-site at http://trudeauinstitute.org.

NOTE: We would have made these details available to Athens Citizens sooner had the ALDC sent the information requested on their own, or if the Mayor had encouraged them to answer the original FOIL of Nov.28th 2008 instead of defending the ALDC by denying that they have to answer FOILS. This behavior is opposite of the intention of Open Government Practices and the Freedom of Information Law for agencies of the Government to thwart citizens’ efforts to obtain public information.