Fairgrounds Being Sued for Failing to Pay on Solar Panels
Updated On: Sep 27 2012 11:04:11 PM CDT
A bank is suing several California fairgrounds for the balance of a loan they took out several years ago, the Tehama District Fairgrounds and Shasta District Fairgrounds are among them.
According to a complaint filed by the lender, the money was borrowed to put solar panels on some of the barns and other buildings at the fairgrounds.
The fairs borrowed the money from the now-defunct California Fairs Financing Authority. but after the 2008 financial collapse PNC Equipment Finance took over the $21 million loan.
Mark Eidman, CEO of the Tehama District Fairgrounds said since then interest rates have increased, which makes those loans more difficult to pay back.
On Thursday the Tehama District Fair kicked off in full-swing, but Eidman said it's finances are barely holding on.
Right now the fair owes a little more than $200,000.
"You have a little windfall, you have something that happens or something breaks like at home when you get a little money and the refrigerator goes out," said Eidman.
In their complaint PNC states they did not receive payments from the fairgrounds from March to July of 2011.
Eidman said the fairgrounds are still making payments on the panels but don't foresee paying them off anytime soon.
However, Eidman said he was not worried and believes an agreement among the 12 fairs involved in the lawsuit will be reached with the bank.
The CEO of the Shasta District Fairgrounds could not be reached for a comment.