By Annette Newcomb

Editor

 

The Twin Lakes Board offered its full support to a local business that needed financial help to complete construction.

Two weeks ago Twin Lakes Trustees learned there was a feasible way to use tax increment financing (TIF) and keep the local business, Donavon’s Reef, in business.

Donavan’s Reef was severely damaged by a fire in January that claimed on life. The motel was rebuilt with more modern safety features, including a firewall between each unit, instead of every other one.

At a meeting two weeks ago, Len Sattler, one of the owners of Donovan’s, told board members that he was not aware of the new state law the required sprinklers to be installed. Basically, they had run out of money to complete the reconstruction of the motel.

“My insurance paid to the maximum, contents and the building. But we were not aware the fire suppression system was required by law,” Sattler said at the time. Sattler said the business was short about $25,000, the cost of the fire suppression system installation.

During the Committee of the Whole meeting Village Administrator David Cox said he had met with Sattler to discuss ways to village might be able to provide assistance.

After working through several different scenarios an option Cox found a solution that could be feasible, suggesting the village using TIF funds to lower or eliminate interest. The village can borrow the money at 3.75 percent, which is the Sate Trust Fund rate. The village could then loan these funds to Sattler and his business partner. The loan can be written for up to 10 years paid off by the business in five years, at $458 monthly.

If the business defaults on the loan, the balance goes on the property tax, it was noted at the time.

During Monday night’s Village Board meeting trustees approved the loan.

 

 

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