The Evansville City Council took an unprecedented step in voting to provide a $4.8 Million loan to a start up company from Houston, TX to manufacture a gas pressure step down device that they have a license for in the old Whirlpool Building. The City will also be covering two years rent for Earthcare.
The hotly contested vote was taken after a vote to forcefully extract the bill from the Finance Committee whose chairman Councilman John Friend was opposed to going forward due to the fact that many of the questions asked regarding the financial plan had not been answered and because no real world technical testing was presented.
Ken Haney of Earthcare testified before the council that he had orders from all over the world coming in and that they are on the cusp of getting a multi-billion deal in New York. No details of any orders were submitted. Mr. Haney also testified that Earthcare had been turned down for loans at 6 or 7 banks but provided no documentation with respect to why.
Councilman Conor O’Daniel voted to support the loan after giving every indication that he was against doing so and asking many articulate questions for which no answers were offered.
Other Council members voting for the loan package were President Connie Robinson, Councilwoman Missy Mosby, Councilman Johnathan Weaver, and Councilman H. Dan Adams who has an MBA from Washington University.
Council members Dan McGinn, Stephanie Brinkerhoff-Riley, John Friend, and Al Lindsey all voted against the loan. And so begins the saga of the City of Evansville’s foray into the world of investment banking. The $4.8 Million loan has no collateral associated with it.