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Daviess County extends Hollisyn LLC repayment deadline to Dec. 31, 2025; commissioners request stronger assurances
Summary
Fiscal Court approved a three-month extension of a loan repayment for Hollisyn LLC and commissioners asked staff to explore additional security such as a mortgage on company property.
The Daviess County Fiscal Court on Sept. 18 approved an amended memorandum of agreement extending the repayment deadline for a 0% interest loan to Hollisyn LLC from Sept. 30, 2025, to Dec. 31, 2025. Treasurer Mr. Johnson told the court the original agreement from Sept. 3, 2015, included a $166,000 0% interest loan and a $134,000 contingent grant; the total county contribution was $300,000 from the economic development fund.
Nut graf: Commissioners discussed the company’s ongoing financial difficulties and asked county staff to explore stronger repayment assurances. Commissioner Condor specifically asked whether the county had considered securing the loan with a mortgage on the company’s property; Treasurer Johnson said that had not yet been done but could be discussed.
Treasurer Johnson said several extenuating circumstances affected the company’s ability to pay and recommended the short extension "to afford Hollisyn LLC the time necessary to confer with their new chief financial officer on payment options based on current fund activity." He added the extension is not expected to put the county in a detrimental position. Commissioner Condor asked whether the county had considered taking a mortgage on the business to secure repayment; Johnson replied, "We have not as of yet, but we can certainly discuss in the interim." Judge Executive Charlie Castle, who said he previously worked in banking, said the county would strengthen the agreement if needed or expect payoff.
The motion to approve the three-month extension was made and seconded and carried with the court voting "aye." The MOA had previously extended the repayment date from Sept. 30, 2020, to Sept. 30, 2025 amid the COVID-19 pandemic. The court directed the treasurer to investigate possible additional security measures for the loan and report back.
Ending: The extension was approved by the court; staff were asked to consult with legal and financial advisers on potential mortgage or other security options.
