KINGSTON, N.Y. — The Ulster County Financial Growth Alliance has waived for an extra 90 days curiosity funds due on a mortgage to The Farm Bridge, whereas the board continues to weigh a request by now-defunct firm’s proprietor to forgive the remaining $21,504 mortgage steadiness.
Whereas board members throughout a gathering Tuesday acknowledged the difficulties The Farm Bridge proprietor Jim Hyland face in in attempting to maintain the enterprise afloat, a number of members expressed concern that honor his request would restrict the amount of cash accessible for future loans and will set a harmful precedent for a way future loans by way of the Alliance’s revolving mortgage fund.
“Clearly it’s not a straightforward resolution,” stated board member Zac Kleinhandler. “We even have to recollect our obligation is to not assist only one single particular person.” By forgiving the mortgage, he stated, “we’re taking cash away from plenty of folks to profit one particular person.”
Board member Ward Todd stated that Hyland “labored actual laborious” to make his enterprise a hit.
“I don’t suppose $21,000 within the scope of issues is a major amount of cash,” he stated.
Alliance President and CEO Tim Weidemann stated the quantity Hyland nonetheless owes is roughly $2,000 lower than the unique mortgage principal quantity of $150,000. He informed board members throughout Tuesday’s assembly that whereas Hyland “does nonetheless have a few belongings and slightly bit of money,” it’s not sufficient to cowl his remaining money owed.
The Farm Bridge, as soon as hailed because the cornerstone of Ulster County’s effort to revitalize the previous TechCity complicated, introduced on the finish of September that it might shut its doorways after working for 11 years.
Hyland requested the Alliance to cut back the then-$71,502 excellent mortgage steadiness to $50,000. As a substitute, the board issued a six-month moratorium on the accrual of curiosity on the mortgage. The Farm Bridge made a $50,000 mortgage cost that month, leaving a steadiness of $21,504, which Weidemann stated is about what’s owed in curiosity on the mortgage.
In an October letter to the board, Hyland stated the issues the corporate confronted at its TechCity web site, mixed with delays in transferring into the county-owned Enterprise West web site on the TechCity campus, the COVID-19 pandemic and provide chain issues have been merely greater than the corporate may face up to.
“The checklist of transgressions at (TechCity), together with discovering out just lately from the (U.S. Environmental Safety Company) that we have been illegally uncovered to asbestos over (an) eleven-month interval in 2015, is lengthy and exhausting,” he wrote. “In 2019, (The Farm Bridge) needed to step in and assume cost of electrical, fuel and water for the positioning to ensure that The Farm Bridge and different tenants to proceed to remain,” he added.
“To proceed to take losses and private danger, on a web site that had no clear end line was an excessive amount of,” he stated.
Weidemann stated that to recoup the remaining steadiness would require the Alliance to “go after” Hyland personally.