Loan for ball tourney expected to strike out

One commissioner said financial information for the loan isn't strong enough.
By ED RUNYAN
VINDICATOR TRUMBULL STAFF
WARREN -- Chances of a softball tournament organizer's getting the $50,000 loan he seeks from Trumbull County this spring appeared to be dropping like a sinking line drive the longer Commissioner Paul Heltzel talked.
Heltzel told the Trumbull County Planning Commission on Tuesday that everything he's heard and discovered about the request suggests the risk is too great -- especially in light of the loan the county made to ReadyAir last year that is now in default.
ReadyAir received a $200,000 loan to make repairs to its facility at the Youngstown-Warren Regional Airport. The company later filed for bankruptcy after making one payment on the loan.
Heltzel said officials from the county prosecutor's and auditor's offices agree that in terms of making a loan, the county is taking too much of a risk in turning over $50,000 from the Revolving Loan Fund to Thunderplex Inc. manager David Anderson.
"I think there's a problem with people mixing the good that it does with making a loan," Heltzel said, saying there's no doubt that Anderson will be bringing millions of dollars worth of business to Trumbull County through the PONY girls' softball tournament this summer.
What figures show
Financial information Anderson provided to receive the loan, however, shows that the Thunderplex Inc. lost $279,860 in 2005, most of that because of the 2005 tournament. He said Anderson reported revenue of $74,600 in 2005 but projects revenue of $723,000 this year.
"Everybody who's looked at it has problems with the financial statements," Heltzel said. "Where's the source of repayment?"
Many members of the planning commission are also members of the Revolving Loan Fund Committee that met last month to recommend that the commissioners approve the $50,000 loan. John Mahan, a member of both, said he believes the softball tournament and its projections of $20 million in revenue are worth the risk.
"If you lose $50,000 from the RLF, but the citizens of Trumbull County make $5 million, you win," Mahan said. "If you looked at any of these [RLF] loans the way a bank would, you'd trash them all ... But these things are being made for the good of Trumbull County."
Anderson has said the tournament will use 39 fields at eight sites in Trumbull and Mahoning counties. He said the tournament will attract 320 teams and around 18,000 people.
Purpose of loan
Alan Knapp, planning commission director, said Anderson needs the loan so he can hold the tournament in such a way that he can keep it coming back year after year. Knapp said Anderson told him that without support, he might have to move the tournament outside the county.
Heltzel said he believes commissioners will still approve a different $50,000 request that Anderson made through the Reinvestment Partnership Corp. For Anderson to get that loan, commissioners must give final approval to $25,000 from seven local banks and $25,000 from the county's Section 108 Loan Guarantee Fund.
Commissioner Dan Polivka, who also attended the meeting, said he would be inclined to approve both loans, but he doubts that the RLF loan will make it to a vote. Commissioner James Tsagaris said later that he has questions about the request and would want more answers before approving it.
Heltzel said there are problems with basing the loan only on the collateral that Anderson, his father and his brother are offering. Three of the four properties being offered have mortgages.
runyan@vindy.com