It appears the City/County of Peoria had put in place, through an Inter-Governmental Relations Committee a long time ago, a City/County Loan Program with the aim of helping businesses in need of financial assistance to expand or begin operations.
An early loan of $100,000 to United Scanning Technologies went bad in 1986. In time, this Loan Program was replaced by a Self Employment Training/Revolving Fund to assist small businesses, especially minorities. In time this assistance evolved into what is now Peoria County Government Assistance Program Loans (GAP) administered by the EDC for Central Illinois. The City of Peoria has a different Loan Plan. By the year 2001, Peoria County had contributed $1.2 million to EDC resulting in an EDC claim of the creation of $164 million in private investment in Peoria County.
To be eligible for a Peoria County Gap Loan the industrial, commercial or service related business located in the county will create and retain jobs. Projects selected by the EDC and brought before the Peoria County Tax/EDC Committee will attract sizable PRIVATE investment, have solid commitment to create or retain permanent jobs, demonstrate financial feasibility and benefit low to moderate income persons.
To my knowledge, FireFly met none of these criteria. Firefly did eventually commit to have their home office in Peoria. On 5/16/07, the JS reported that FireFly entered into a partnership with Northstar Battery Co. in Springfield, Mo. who will contract with Crown Battery of Fremont, Ohio. "We're looking forward to partnering with FireFly Energy and to MANUFACTURE a new performance class of battery based on this innovative technology," said Hal Hawk, Crown's president, in a statement.
Not only did Peoria County stretch the meaning of GAP loan but they waded into uncharted waters of the very risky business of Venture Capital.
And with the risk of taxpayer money, no matter which horse came bearing the money.
My next blog will cover how FireFly landed in the old Foster Gallagher location.
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