ACTION REQUESTED:
Title
Communication from the City Manager with a Request to APPROVE a Loan from the City's REVOLVING LOAN FUND to CENTRE STATE INTERNATIONAL TRUCKS and to Authorize the City Manager to Execute the Necessary Documents.
Body
BACKGROUND: Centre State International Trucks, Inc. (Centre State) is seeking financing of $410,000 to address cash flow challenges brought about by delayed payments from one of their largest accounts, the Illinois Department of Transportation (IDOT). Currently, IDOT receivables equal approximately $170,000. An additional $240,000 is expected for services to be rendered up to the end of March 2016. Rather than terminate their contract with IDOT and possibly lay off employees, Centre State plans to continue servicing the account and needs $410,000 in funds to cover the anticipated cash flow deficit.
Company Background
Centre State International Trucks, Inc. (Centre State) is an S-Corporation that has been locally owned and operated by Gary Prepejchal in Peoria since 1979 (36 years). The company is a medium and heavy duty truck dealership and repair shop that specializes in new and used truck sales, parts sales, maintenance/repair, and leasing/rental. Centre State has two locations: one in Peoria at 3313 SW Washington Street and one in Iowa. The company employs 60 employees, with 36 full-time employees working at the main facility in Peoria, including an executive management team, administrative assistants, and skilled/technical union laborers.
Centre State has an exclusivity agreement with International Truck and Engine Group to only sell their line-up of new medium and heavy duty truck products. A good portion of Centre State's business operations is with the Illinois Department of Transportation in repairing and maintaining IDOT's District 4 vehicles. In addition to IDOT, other key accounts include Airland Transportation, Ryder, Penske, Sherman's, Ezra Rumbold Farms, Frito Lay, Pepsi, Behr Iron and...
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