Time is running out on the letter of credit for Sunny Hill Farms' letter of credit for the unfinished development in Mahoning Township and supervisors gave Rick Bjorkman of PKR Enterprises their opinions on whether or not to extend the letter by one year or two years
The majority of the supervisors at the meeting indicated to Bjorkman they would be inclined to only provide a one year extension due to their concerns over making sure enough credit was in the letter to cover costs for a two year period. If the letter is not extended, supervisors already voted unanimously to draw down on the credit before it expired to cover the unfinished work. This vote took place earlier in the evening before Bjorkman came to the meeting.
"It costs me $4,800 each year I extend the letter through the bank," said Bjorkman, "and I would rather obtain a two year extension if you would oblige to save that cost."
Solicitor Tom Nanovic said that he believed the board could assume a 10 percent increase over each of those two years if the board wanted to extend it for that period and that would be able to cover the projected costs for the development.
"I would not be inclined to be in favor of two years, because it is too long a period and too easy to lose track of the project because of that," said Chairperson John Wieczorek. He felt the one year period would make it easier to track the project's progress.
Supervisor Travis Steigerwalt was leaning toward being amenable to a two year letter of credit. Supervisor Frank Ruch initially supported the two year period provided that the costs were projected and adequately covered in the amount of the letter but as the discussion progressed and it became apparent that it might not be as easy to project costs for that long a period, Ruch decided the one year term was better.
During the discussion, one of the supervisors mentioned the engineer would need to look at the plans to come up with approximate costs for the letter. Supervisor Bruce Steigerwalt disagreed with this stating it was his understanding Bjorkman's engineer was responsible for providing the estimate.
At the conclusion of the discussion, the board's majority indicated they would only be supportive of the one year letter based on the current information. Nanovic told Bjorkman that he would need to work on getting the letter from the bank as soon as possible as earlier in the evening before Bjorkman arrived; supervisors approved drawing down on the letter of credit before it expired. That vote took place earlier in the agenda and was unanimous. Bjorkman has until June to obtain his extension from the bank.