Confusion over city’s payment of EDC loan
by Franklin Clark, Reporter -- fclark@cadizrecord.com
Oct 09, 2013 | 108 108 recommendations | email to a friend | print
<i>Franklin Clark/Cadiz Record<p>
Cadiz Mayor Lyn Bailey (above) said he was glad Cadiz City Council members were discussing an EDC loan last Tuesday evening.</i>
Franklin Clark/Cadiz Record

Cadiz Mayor Lyn Bailey (above) said he was glad Cadiz City Council members were discussing an EDC loan last Tuesday evening.

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A routine expense report led to the Cadiz City Council taking a second look at its dealings with the Cadiz-Trigg County Economic Development Commission.

Cadiz City Councilors voted last Tuesday night to put a hold on all additional loan payments to the Bank of Cadiz until Cadiz City Attorney Allen Wilson can determine whether the City is responsible for debts the EDC incurs and what say the City has in the EDC’s authorization to borrow money.

At their meeting last Tuesday, Councilors looked at the City’s expense report, and Cadiz City Councilor Frankie Phillips noticed one labeled “EDC Loan Payment” for $2,500.

Phillips asked why the City was paying $2,500 to the Bank of Cadiz when it was an EDC loan payment. Cadiz Mayor Lyn Bailey said the EDC borrowed $200,000 from the Bank of Cadiz while working with Transcraft.

“It’s some of this stuff that we did at Transcraft we had to spend some money on,” said Bailey. “We’re responsible for half of it … And we feel like we need to start paying it.”

For the rest of this story, see this week's issue of The Cadiz Record or subscribe to our e-Edition by calling 270-522-6605.
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