Ulster agency mulls loan cancellation request at defunct Farm Bridge – Daily Freeman

KINGSTON, NY – The Ulster County Economic Development Alliance has waived interest payments owed on a loan to The Farm Bridge for another 90 days as the council continues to weigh a request from the owner of the now-defunct company to cancel the remaining loan balance of $21,504.

While board members at a meeting on Tuesday acknowledged the difficulties Jim Hyland, owner of The Farm Bridge, faces in keeping the business afloat, several members expressed concern that the honoring his request would limit the amount of money available for future loans and could set a dangerous precedent. to find out how future lending through the Alliance Revolving Loan Fund.

“Obviously, it’s not an easy decision,” board member Zac Kleinhandler said. “We must also remember that our duty is not to help a single individual.” By canceling the loan, he said, “we’re taking money away from a lot of people for the benefit of one person.”

Board member Ward Todd said Hyland “has worked very hard” to make his business a success.

“I don’t think $21,000 as part of things is a significant amount of money,” he said.

Alliance President and CEO Tim Weidemann said the amount Hyland still owes is about $2,000 less than the original loan amount of $150,000. He told board members at Tuesday’s meeting that while Hyland “still has some assets and some cash,” it’s not enough to cover its remaining debts.

The Farm Bridge, once hailed as the cornerstone of Ulster County’s efforts to revitalize the former TechCity complex, announced in late September that it would be closing after 11 years in operation.

Hyland asked the Alliance to reduce the then outstanding loan balance from $71,502 to $50,000. Instead, the council issued a six-month moratorium on the accrual of interest on the loan. The Farm Bridge made a loan payment of $50,000 that month, leaving a balance of $21,504, which Weidemann says is what is owed in interest on the loan.

In an October letter to the board, Hyland said the issues the company was facing at its TechCity site, combined with delays in moving into the county-owned Enterprise West site on the TechCity campus, the COVID-19 pandemic and supply chain issues were simply more than the company could handle.

“The list of transgressions at (TechCity), including the recent discovery by (the US Environmental Protection Agency) that we were illegally exposed to asbestos over (a) eleven-month period in 2015, is long and exhausting,” he wrote. “In 2019, (The Farm Bridge) had to step in and take on the electricity, gas and water payment for the site in order for The Farm Bridge and the other tenants to continue to stay,” he said. added.

“To continue to take personal losses and risks, on a site that had no clear finish line, was too much,” he said.

Weidemann said that to recover the remaining balance would require the Alliance to “sue” Hyland personally.

About Francis Harris

Check Also

Auto loans are the fastest growing category of non-home debt. Here are 3 tips to stay ahead of your payments

Image source: Getty Images Do you owe a lot of money on your car? Here’s …