By Annette Newcomb
Twin Lakes Trustees found a feasible way to use tax increment financing (TIF) and keep a local business viable.
Monday night Len Sattler, a part owner of Donovan’s Reef in Twin Lakes, told village board members that he had hit a financial wall in the reconstruction of the motel portion of the business, which burned down earlier this year, claiming one life.
“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. Sattler said the business is short about $25,000, the cost of the fire suppression system installation.
Village Administrator David Cox had met previously with Sattler to discuss ways to village might be able to provide assistance.
After working through several different scenarios an option Cox thought could be feasible he suggested 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.
Trustee Aaron Karow noted, “The fact of the matter is we are still a community and we want to keep our community growing.”
The committee of the Whole unanimously agreed to recommend the TIF loan be approved at the Oct. 17 board meeting.
Village president Howard Skinner was absent for Monday’s meeting and trustee Tom Connolly presided over the meeting.