Red Bud city council discusses loan agreement

The Red Bud City Council held a brief meeting on Jan. 2, with the biggest topic of discussion on the evening’s agenda being an update on an Economic Development Commission loan agreement.

At their December meeting, Alderman Clem Esker noted that the commission had authorized a loan from the revolving loan fund of $450,000 to Mike and Kim Moll to expand Ultra Play Systems, Inc. in the city’s east industrial park.

The city council approved of the loan agreement at a special meeting on Dec. 18, but a few minor changes were being made to the agreement.

While the loan amount of $450,000 and the 10 year length of the loan was not changing, the city will allow the Molls to just pay interest for the first six months of the loan. The rest of the loan would then be divided equally into 114 payments.

The council approved of this change to the loan documents, as well as an updated estimate on the number of jobs that the expansion would create.

For more from the Red Bud City Council meeting, please see this week’s print edition.