Dave Starr
F L I N T O I D
|
Career Alliance CEO says selling property among options for paying back debt
Published: Wednesday, February 23, 2011, 1:37 PM Updated: Wednesday, February 23, 2011, 1:37 PM
Ron Fonger | Flint Journal By Ron Fonger | Flint Journal
Follow
Share0
3
Share close
Google Buzz Digg Stumble Upon Fark
Share Email Print
FLINT, Michigan -- The top executive at Career Alliance Inc. says the job training agency is considering selling property like its North Saginaw Street headquarters if that's what it takes to repay the state for past improper spending of job training funds.
"We're looking at everything," said Career Alliance Chief Executive Officer Alicia Booker. "We're looking at what assets we have that we might be able to liquidate."
CAREER_ALLIANCE_DIRECTOR.JPGAlicia Booker
Career Alliance is working on both a proposed payback schedule and a source to reimburse the state for $586,661 in job training funds that the nonprofit organization spent improperly dating back several years."
Booker and Kevin Keane, chairman of the Career Alliance Board of Directors, said agency officials have agreed that it must take care of the debt.
As grantees, the city of Flint and counties of Genesee and Shiawassee would be liable for any portion of the debt that Career Alliance doesn't repay.
Booker told the county Board of Commissioners today that Career Alliance has asked the state for a four-year payback period with a $50,000 initial payment against the debt.
At one time it appeared that Career Alliance would not need to repay nearly as much as it does now but that changed last month.
Although the state had previously offered to forgive 90 percent of the Career Alliance debt because of reforms and the region's economic distress, federal agencies that supplied the cash originally wouldn't agree to the deal.
In a Jan. 27 letter, the state Department of Energy, Labor & Economic Growth gave Career Alliance 30 days to pay off the debt or notify it if it needs an installment repayment plan.
"Depending on the terms (of the payback) we'll determine what we need to do next," Booker said. "At this point, everything is on the table."
Jamie Curtis, chairman of the county Board of Commissioners, said Booker has told him that selling the Career Alliance headquarters is one potential solution.
Curtis declined to discuss other possible options but said Booker has been invited to the commissioners' meeting next week to provide an update.
Keane referred any specific questions about other options for raising money to Booker.
"We will repay the debt ... We're looking at all available options," Keane said.
Career Alliance owns its headquarters building as well as the Sylvester Broome Jr. Training Technology Center, which it has been in danger of losing as recently as 2009 after it fell behind in payments on loan for which the building had been used as collateral.
State regulators have also previously questioned the viability of Career Alliance owning two separate buildings in Flint. |
_________________
I used to care, but I take a pill for that now.
Pushing buttons sure can be fun.
When a lion wants to go somewhere, he doesn’t worry about how many hyenas are in the way.
Paddle faster, I hear banjos. |
|
FAQ
Search
Memberlist
Register
Profile
FlintTalk.com Forum Index
> Political Talk
