The Mailbag: Will the city recoup its Markley's loan?

Q: With all the hype the last two years about Markley's opening, then not opening, and the money the owners borrowed from the City of Sandusky, can you get an answer regarding the owners paying back the $13,000 Revolving Loan to Sandusky? Word in the real world is the city is contemplating suing for payback. - Tim in Sandusky
Sandusky Register Staff
Feb 21, 2012

 

Q: With all the hype the last two years about Markley's opening, then not opening, and the money the owners borrowed from the City of Sandusky, can you get an answer regarding the owners paying back the $13,000 Revolving Loan to Sandusky? Word in the real world is the city is contemplating suing for payback. — Tim in Sandusky

A: Hi Tim. Reporter Andy Ouriel asked Sandusky city planner Carrie Handy your question. Here is her response: "We are not contemplating suing anyone at this time - I am not sure where Tim is getting his information. Back at the beginning of the year, we wrote to the owners of the Markley's building demanding that they bring their loan payments current by January 25th, 2012.  That did not happen, so we have invoked the 12% default interest rate on their loan.  We have a good lien position on the Markley's building so we are pretty confident that the City will recoup its $13,000 when the building is sold."

Hope that answers your question.

 

The Mailbag is a daily feature on SanduskyRegister.com. Every weekday at noon, we will post one question-and-answer from a resident.

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Comments

donutshopguy

 Government involved in a business venture is ill advised, especially a restaurant.

So what does Sandusky do after this loss of taxpayer money? They do it again with the Krunch Pickle!

Got to love beaucrats. Remember its not their money, who cares ?

The Bizness

 donutshopguy 

I am not saying this is a good or bad idea, but if those beaucrats you are talking about live in Erie County it is their money.  

Government loans can go a long way in helping a business start though.

donutshopguy

 Bizness,

Did they invest their personal money ? No. They ventured taxpayers money. Are they taxpayers. Yes. 

It's easy to hand over someone elses money. Who on the hook for loans that go bad? 

 

wiredmama222

I am confused.  The City loaned this money and yes, they can file a first lien behind taxes of course, but so what?  someone still has to be in a position to buy the property.

And who will do the upkeep on it until then to keep it in condition for a purchase?  The City? 

FruGalSpender

what happens if the business or owners declare bankruptcy? who gets paid and who doesn't?