Defunct coffee shop settles debt to revolving loan fund

Red Willow County commissioners Monday morning accepted a check for $10,000 from Dan and Amy Jones and, with it, closed the account for Jonzeez Java, a portable coffee shop that borrowed $15,000 from the county's reusable loan fund in July, 2003.

In October 2003, the Joneses started falling behind in their monthly payments, and by the middle of 2004, they were four months behind. Jonzeez Java closed in the middle of the summer.

Commissioners started foreclosure procedures in October, 2004, and in December, renegotiated the loan, although the shop was no longer in operation.

By June 2006, Jonzeez Java was again falling behind in its payments, and Rex Nelson, the executive director of the McCook Economic Development Corp., whose board oversees the county's loan fund, started negotiations with the Joneses to pay off the loan.

Monday morning, Nelson came to the commissioners' meeting, with a $10,000 check in hand. Commission Chairman Earl McNutt said that although the check is about $1,000 short of the total that the Joneses owe, it would be best to accept the check and be done with it.

Nelson told commissioners that he wants to get the money back into the county's recirculating loan fund and make it available to other businesses seeking loans.

Commissioners unanimously accepted the check.

The Joneses have also renegotiated repayment of a loan of $15,000, for equipment, from the Rural Enterprise Assistance Program.

In an update on CDBG loans, commissioners learned that Silverstone did not make its October payments. Pet Pros and Accents Etc. are current on their payments.

In other action:

* Commissioners adopted a resolution to temporarily transfer $60,000 from the county's inheritance fund to its self-insurance fund because the newly-created self-insurance fund will be short on cash reserves until the 2006 real estate taxes start coming in after the first of the year. The money will be repaid to the inheritance fund before the end of the 2006-07 fiscal year.

* Commissioners agreed to open bids for a new motor grader at their Nov. 20 meeting, at 11 a.m. They will trade in a 1992 140G Caterpillar road grader.

* Commissioners learned that Maplewood Apartments, in the 700 block of West 14th, has filed an appeal of its real estate property valuation and taxes to the Nebraska Tax Equalization and Review Commission (TERC). During a tax protest hearing this summer, Maplewood Apartments owners requested that Red Willow County commissioners and assessor reduce the property's valuation from $779,520 to $683,132, claiming that the valuation "is inconsistent with net operating income generated by this affordable housing project." Commissioners and Assessor Sandra Kotschwar declined to reduce the valuation based on a recommendation from a commercial appraiser.

* Commissioners approved a request from McCook Public Schools that the schools be allowed to use county facilities if school officials need to temporarily evacuate school buildings.

* No one appeared to ask questions about the proposed jail and sheriff's office, the subject of a bond election Tuesday.