From the Journal Gazette letters to the editor
City Council needs Stewart
As former secretary and current treasurer for our neighborhood association, I have worked with both candidates running for the City Council’s 4th District. Chris Stewart knows how to get things done. Though busy as vice president of sales and partial owner of ISM, a sales and management company, and co-owner of two Fricker’s restaurants, he still manages to find time to be his daughter’s soccer coach, junior achievement representative for her school and president of our homeowner’s association. A local teacher who also knows both candidates and adamantly supports Stewart said it best: “If you want to get something done, give the job to someone who’s busy. They’re in high demand for a reason.â€
DEBBIE WILDRICK Fort Wayne
From Stewart’s web site:
“Chris, a life-long resident of Fort Wayne, chose this community in which to raise his family. He has made a substantial investment in this community by owning and operating his local businesses, Frickers Restaurant and ISM. As a city councilman, Chris will use his knowledge of the community and his business experience to help Fort Wayne grow and prosper.”
—Robert Eherenman, local attorney
He made a substantial investment? Ugh, no – he did not.
Fricker’s began franchising its restaurants in 2003 as franchisees opened restaurants in Huber Heights, then downtown Toledo and then Fort Wayne, Ind., in November.
Paul Curtis director of franchising, said franchisees need to have $750,000 in net worth as well as $250,000 in liquid assets.
I guess Stewart was an exception. Stewart received $1,018,180 dollars in federally guaranteed funding to acquire the land and build Frickers (see here and here). He also used a Toledo, Ohio based bank do run the funding through. He must be highly concerned with supporting Fort Wayne based businesses. Of course when you do that, you get an endorsement for your campaign web site from someone that’s not even in Fort Wayne:
“I have been a business partner with Chris’s company for the past five years. During that time, Chris has impressed me with his energy, vision and ability to own and manage a business outside of his regular job. Chris has a passion to be successful and better the communities that he and his restaurants are involved with.”
—Eric Morman, Senior Vice President, First Federal Bank, [Findlay, Ohio]
I went to Stewart’s web site and could not find where he stood on any issues. I did email him asking him where he stood on downtown redevelopment. If he’s a proponent of downtown redevelopment, why did he build Frickers on Washington Center Road?
DT
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“He made a substantial investment? Ugh, no – he did not”
Ummmm……Well Dan, he is on the hook for those loans…..just like Matt Kelty is on the hook to Fred Rost.
Or….are you saying Matt Kelty DID NOT invest in his own campaign after all?
No Kevin, you’re incorrect. Stewart is not on the hook, the corporations that took the loans out are as you say “on the hook”. It’s a federally guaranteed loan. If the corporation defaults the feds pay the bank. Matt didn’t have any “federally guaranteed money”, he’s personally “on the hook”
Matt is not on the hook at all- there is no collateral backing up the Rost loan. As a matter of fact, we do not even know if he “really” has to pay the loan back.
Dan T.
I give you a “atta boy” on this one. You did it with facts and no real “mud slinging.”
I am not sure your post will change any voter’s but they do have a right to know.
Kevin K. has the right to reply, which I am happy you afforded him.
Kevin, you stated:
Matt is not on the hook at all- there is no collateral backing up the Rost loan. As a matter of fact, we do not even know if he “really†has to pay the loan back.
You must know very little about the law. If he defaults and Rost decides to pursue it he could attach his assets, collateral or not.
Dan,
He is IN default and Rost is NOT pursuing it.
I think Kevin was insinuating that Fred Rost may not pursue recapturing his loan in the event of a default. In this way, Matt would be off the hook. But this also implies that there was the possibility of an understanding between Fred and Matt which was outside the load contract, once again attacking Matt’s credibility. So far, there has been no evidence that any sort of arrangement as this has been made.
Dan,
With regards to Matt’s loan from Rost, if Matt defaults and Rost decides to pursue it, Matt files Bankruptcy and that is the end of the story. An unsecured loan is pretty worthless if the individual defaults on the loan. That’s just the way it is.
Also, I would think that as a business owner (at least I thought you owned a computer company or something, but could be wrong) you would be a little more understanding that any kind of investment like this is going to be done thru a corporation. I think that you are nit picking at this one. Good for Stewart for starting a business and getting it done. Isn’t Matt always talking about the entrepreneurial spirit!
Eric,
There are many types of unsecured loan. My guess is you have at least two of them in your wallet. If you default on paying back your credit cards, the Credit Card companies will pursue repayment. While in most cases they will not go after assets (the person owing the money would just file bankruptcy) they often do ask as judge to mandate a loan repayment plan that includes wage garnishment.
For the sake of argument here, bankruptcy makes SECURED loans worthless. Under federal bankruptcy protection laws, creditors cannot seize items pertinent to the health and well being of an individual or deprive him of his livelihood. In plain english, that means they can’t take his car or his home. Typically, those are the only two assets that banks use to secure loans. So in today’s world, it does not matter if loans are secured or not, you can get out of paying either in the same manner. The only real difference between a secured loan and an unsecured loan anymore is the interest rate that is being charged.
So ERIC (and Kevin) thats just the WAY IT IS.
The point that needs to be made is that ALL of this was avoidable if Rost had simply loaned the campaign the funds.
The argument Kelty has used is this way he is on the hook for it, and the campaign cannot somehow default on the loan.
If he is an honorable as Kelty supporters claim, then the campaign could not default anyway- it shows the primary flaw in Kelty’s argument.
Dan’s addition: Kevin, your so full of chit on this one it amazes me. If Rost would have loaned the campaign committee instead of loaning it to Kelty he would have no recourse on an entity that has no assets and will be extinguished once the campaign is over. (read: no obligation).
Sheesh.. I thought you were smarter than that.
Gosh, now we are saying private loans must be fully disclosed.
Well let us see Tom Henry lay out every loan he has so we (general public) can decide if they may have anything to do with the eleciton run.
Let his brother Jerry prouduce all his financial records so we can make sure he did not provide money to others, to donate to Henry.
Do I want that? NOOOOOOOOOOOOOO!!!!!
Just making a point.
What the heck is it to any of us if Rost and Kelty worked out a new payment plan? While some may believe it is their job to find out no one appointed, elected, or made them the judge and jury.
Kelty, trying to be open, told the media how much he has repaid. He did not have to. He could have said he was up to date on payments. For all any of us know he is!
We have a Mayor who hides land buying form the city council until after the fact. We have a Mayor trying to tell council that unless a walkway is built on our dime the hotel deal is dead. Yet, he has yet to produce a letter from the hotel group stating such. That is my money and I do care about it!!!
Just like Stewart and his loan. It was interesting to learn but does not change my view of him, in running for office.
Is that like righting a lot of checks knowing there is no money to back them up?
Kevin should not be saying anything about anyone’s financial practices!