EDMORE — After five years of silence, the Edmore Economic Loan Fund Development Committee has finally met.
Their first action? A recommendation against accepting a proposed reduced loan payment plan from the Maxfield siblings.
Anthony “Tony” Maxfield and his sister Shari Maxfield own Averyville Acres, named after the original name of the town of Wyman. The partnership owns Maxfield’s Restaurant in Blanchard, Maxfield’s Inn in Edmore and The Depot in Edmore. Tony Maxfield has a 51 percent share of ownership and Shari Maxfield has a 49 percent share.
The Edmore Economic Loan Fund Development Committee and the Edmore Village Council approved granting a $200,000 loan to the Maxfields in November 2000 to build a motel in Edmore. The committee and the council also granted a $20,000 loan to the Maxfields in October 2002 and a $77,000 loan to the Maxfields in September 2006.
The Maxfields have only made three payments on their loan since that time — two payments in December 2006 and one payment in October 2007.
The loan fund committee, which makes loan recommendations to the village council, hasn’t met since August 2008. They finally met last Wednesday after appointing Councilman Jerry Rasmussen as chairman of the committee. Other committee members include Village President Chet Guild, Treasurer Elaine Leak, Chemical Bank representative Karen Nesbitt Village Manager Neil Rankin and Village Attorney Dennis Moore.
Tony and Shari Maxfield sent a letter dated Aug. 5 to the village of Edmore, offering to pay $60,783.77 — 28 percent of the $217,084.89 that they currently owe the village. The Maxfields said they were prepared to start making monthly payments from Sept. 1 of this year through Oct. 1, 2021.
“We are addressing this directly to council members as all of our prior requests for meeting with the loan committee have been denied by Chet (Guild) and (Councilman) Chuck (Burr),” the Maxfields’ letter stated. “We have followed through with a letter to answer concerns from your attorney with no response. We had made a good faith offer and are unsure if any of it was ever brought to the council.
“The following offer is the same as what was finalized with first mortgage holder Chemical Bank on Jan. 27, 2012; an amount equal to 28 percent of the balance due on the Averyville Acres mortgage with the bank. With the release of the prior mortgage note and guaranties dated Oct. 3, 2006, we would enter into this new agreement of paying $60,783.77 — an amount equal to 28 percent of the current amount of $217,084.89. This note will be paid in full by the same date as the original note. The bank, our CPA and we feel that we can handle this monthly payment without jeopardizing the continuation of the business and the rest of our enterprises.
“We look forward to continuing to be a vital part of the community,” the letter concluded.
The committee voted unanimously not to accept the Maxfields’ proposal.
“I believe the committee decided to make this recommendation to council because it was in the best interest of the residents of Edmore from both a financial and legal standpoint,” Rankin told The Daily News.
Tony Maxfield declined a request for comment from The Daily News after the committee voted against his proposal.
Also at last Wednesday’s meeting, Rankin proposed targeting downtown real estate for possible use of the Edmore loan fund.
“I suggested working with our downtown because many current owners and potential/prospective investors, not necessarily from Edmore, may not realize that this development fund is available,” Rankin said. “It is a great incentive to help business get the financing they might need.”
Rankin also proposed mailing quarterly letters about delinquent loans to delinquent businesses.
“Because the committee has not met in a few years, most previous discussion regarding delinquent loans, from what I understand, has been a face-to-face meeting,” Rankin said. “I suggested that the letter could clarify the position of the committee and council and help open the channels between lender and borrower.”
In other business at last Wednesday’s meeting, the loan committee voted to end consultation services with Clark and Hill PLC.