Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Economic Recovery topic
No spam. Unsubscribe anytime.
Council accepts Primo Middletown collateral to satisfy defaulted forgivable loan
Summary
Council approved a resolution accepting furniture, fixtures and equipment from Primo Middletown LLC to settle a $219,000 outstanding forgivable loan; city will determine reuse or disposal of the surrendered collateral.
MIDDLETOWN, Ohio — City Council on Aug. 5 approved a resolution accepting certain collateral from Primo Middletown LLC as full satisfaction of a defaulted forgivable loan agreement executed in 2022.
Law Director Alex Ewing explained the city executed a forgivable loan with Primo in 2022 for $2.2 million; Primo recently ceased operations, creating a material default. The outstanding balance under the promissory note and loan documents was approximately $219,000. To avoid costly litigation, the city negotiated that Primo would surrender furniture, fixtures, equipment and other personal property as collateral in satisfaction of the debt.
Council approved the resolution authorizing acceptance of that collateral and directed staff to take possession and determine the best reuse, disposition or sale. Council members noted the surrendered items may have limited resale value but could be repurposed; staff said they would evaluate options and return to council if disposition requires policy direction or sale approvals.
