With both of his colleagues expressing skepticism, Lucas County Commissioner Pete Gerken yesterday delayed yet again a vote on whether to lend $1.5 million to Maumee Authority Stamping Inc.
The company, led by Chief Executive Officer Keith Obey, has asked the county for the money in a short-term, 7 percent loan to help close a deal to buy the former Ford plant in Maumee from the automaker before Oct. 15.
Tina Skeldon Wozniak, president of the commissioners, said after the meeting she wasn't ready to vote on the proposal.
"Where are the other partners on the public side?" Ms. Wozniak asked. "Where are the dollars for us in case something would fall through?"
To secure an investment of $14 million from a private investor, Mr. Obey said, Maumee Authority Stamping needs $3 million in "operating capital" when the plant is purchased.
The company has raised $1.5 million from investors and an additional $900,000 from "employee investors," who are paying $16,000 each for a chance to work at the plant and own a share in the company.But the $900,000, which Mr. Obey said he hopes will soon reach $1.5 million, is being held in an escrow account until the investments are approved by the SEC.
The county's loan could create the operating capital to close the deal. But under terms of the proposed loan agreement, the money would not leave the county's coffers until the full $1.5 million has been raised by Maumee Authority.
But if the loan goes through, the employees could still take their money out of the escrow account - in which case, the county wouldn't be able to reclaim the loan.
Speaking to the dozens of residents who have invested in the project and came to yesterday's meeting, including many former workers, Commissioner Ben Konop said he wanted to make the project work, but he wanted to know more about the project's investors before committing county funds.
Mr. Obey has said little about the private investors, claiming it would be inappropriate to name them now.
Mr. Gerken, a former autoworker, said he hoped his colleagues could come around.
"We're taking a short-term risk to give these people the chance to get back at doing what they know how to do," he said.
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