City Says Bank, Airport Refuse Information Request
Grand Savings Bank is refusing to give out details of the Grove Municipal Airport Note amendment to the city, according to a memo from Lisa Allread, City Treasurer, released Friday.
Efforts to reach Mark Londagin, bank president, were unsuccessful; however bank vice president Mike Blecha said Londagin had talked with the bank attorney and had instructed employees not to discuss the issue.
Terri Abercrombie, manager of the airport, said their attorney David Jones had written the bank instructing them to not accept early payoff of the loan, as voted by the airport board last Monday.
Abercrombie said the board modified the loan about a year and a half ago and lowered the interest rate from 6.0% to 4.5% with no change in payments and no refinancing. The maturity date of 2012 should change if the principal is applied to the note, she said.
Debbie Mavity, assistant city manager, went to the airport Friday seeking a copy of the letter from David Jones to the bank but was denied the letter, she said. City officials and the city attorney were in meetings late Friday seeking a legal opinion on the withholding of information from the bank as a possible violation of the Open Records Act since the city's tax ID number is on the loan document.
Efforts by city manager Bill Galletly to have another meeting on a compromise settlement this week were rebuffed by the airport board, he said Friday. "My phone calls were not returned," he said.
The issue is over transfer of property from the trust authority to the city, and early payoff of the $83,000 note by the city, which is in the trust authority's name.
Abercrombie said the note details are already at city hall, "they have a copy of it."
Efforts to reach Mark Londagin, bank president, were unsuccessful; however bank vice president Mike Blecha said Londagin had talked with the bank attorney and had instructed employees not to discuss the issue.
Terri Abercrombie, manager of the airport, said their attorney David Jones had written the bank instructing them to not accept early payoff of the loan, as voted by the airport board last Monday.
Abercrombie said the board modified the loan about a year and a half ago and lowered the interest rate from 6.0% to 4.5% with no change in payments and no refinancing. The maturity date of 2012 should change if the principal is applied to the note, she said.
Debbie Mavity, assistant city manager, went to the airport Friday seeking a copy of the letter from David Jones to the bank but was denied the letter, she said. City officials and the city attorney were in meetings late Friday seeking a legal opinion on the withholding of information from the bank as a possible violation of the Open Records Act since the city's tax ID number is on the loan document.
Efforts by city manager Bill Galletly to have another meeting on a compromise settlement this week were rebuffed by the airport board, he said Friday. "My phone calls were not returned," he said.
The issue is over transfer of property from the trust authority to the city, and early payoff of the $83,000 note by the city, which is in the trust authority's name.
Abercrombie said the note details are already at city hall, "they have a copy of it."
posted by Editor | 2:55 AM
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