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Home My WebLink About12/22/1997December 22, 1997 The Council of the City of Waterloo, Iowa, met in Special Session at City Hall Council Chambers, Waterloo, Iowa, at 1:00 p.m. on Monday, December 22, 1997. Mayor Pro Tem Harold Getty in the Chair. Roll Call: Krizek, Anders, Mollenhoff, Getty. Absent: Jordan, Murphy, Collier. 109580 - Krizek/Mollenhoff that the Agenda, as proposed, for the Special Session on. Monday, December 22, 1997 at 7:00 p.m., be accepted and approved. Ayes: Four. Absent: Jordan, Murphy, Collier. Motion carried. 109581 - Krizek/Mollenhoff that the Calls for the Special Session on Monday, December 22, 1997, be received and placed on file. Ayes: Four. Absent: Jordan, Murphy, Collier. Motion carried. DOCUMENTS 109582 - Mollenhoff/Anders that the recommendation of the Revolving Loan Committee to approve a loan agreement with the National Cattle Congress in the amount of $45,000.00 at 9.5 percent interest, with a six-month balloon, be received, placed on file and "Resolution approving said loan agreement", be adopted and Mayor Pro Tem and City Clerk authorized to execute same. Prior to a vote on the above motion, the following comments were heard. Jim Walsh, City Attorney, reported that the $45,000 loan to the National Cattle Congress was approved by the Revolving Loan Committee at a meeting held on Friday, December 19, 1997. The loan will be used by the National Cattle Congress for operating expenses and is payable in six months. The National Cattle Congress will give the city personal property valued at $145,995 and consisting of equipment and a few vehicles to be used as collateral for the loan. The loan is to be given a priority position in relation to all other administrative expenses in the bankruptcy estate. Administrative expenses as a class are given the highest payment priority so the city will be put at the top of the list for being paid. Councilperson Mollenhoff questioned the amount owed for FICA, medicaid, social security and state taxes. Mr. John Titler, attorney for the National Cattle Congress, stated that the only IRS claims are for wage taxes only. All state taxes are up to date, and that the Cattle Congress has not had to pay sales taxes for two years as they are exempt. Councilperson Anders questioned Mr. Walsh regarding a letter written to City Planner Don Temeyer regarding the loan to the National Cattle Congress and the need for them to get approval of the Bankruptcy Court for the $45,000 loan. Mr. Walsh stated that the letter was written on December 16, 1997, and at that time he knew the Cattle Congress would need to go through the final process in Bankruptcy Court in a few weeks. Mr. Titter stated that the final hearing will be on January 21, 1998. It is a two tier process. Under Rule 4001 there must be a 20 -day notice. An application can be made to the Bankruptcy Court on emergency need, and the court will set a hearing. The Bankruptcy Court believed there was an emergency need and gave the National Cattle Congress authorization to borrow up to $45,000 from the city. Mayor Pro Tem Getty stated that he was at the December 19, 1997 Revolving Loan Committee meeting. The National Cattle Congress will make a utility deposit in the amount of $22,514 to MidAmerican Energy and pay general liability insurance premium for a twelve month policy in the amount of $16,962. There are numerous events scheduled at the Electric Park. The National Cattle Congress should be able to do business as usual from now through April with the income from scheduled events. Mr. Titter stated that the Cattle Congress can no longer pay insurance premiums on a monthly basis but must pay for twelve months and that the insurance premium is in the budget as an expense. Councilperson Krizek stated that the projected expenses do not show any provision to pay back the loan within the six month period. Councilperson Krizek questioned if the budget figures were inflated to cover expenses. Ms. Krizek questioned what plans the Cattle Congress has for the property. Mr. Titler stated that they have three objectives: 1) pay creditors in full which is approximately $200,000, 2) come to resolution with the Meskwaki Indians, and 3) make sure the National Cattle Congress ends up being a community asset. Councilperson Krizek asked if the Meskwaki Indians have a lien on the property. 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