Runningboards defaults on $400,000 loan
Apr. 6—WATERTOWN — The owner of Runningboards Marketing, known for its trucks with digital advertising displays, has defaulted on a $400,000 loan with the Jefferson County Industrial Development Agency.
The outer Washington Street business abruptly closed in December.
Employees weren't told prior that Runningboards was going out of business, according to a source who is familiar with the situation because they had a relative who worked there.
"It closed quickly and quietly," the source said.
The business still owes $362,582.19 on two loans that it received from the JCIDA in 2019 and in 2020. The company stopped paying on the monthly payments of $7,187.48.
A division of the company, RBM Manufacturing, manufactured the signs for the trucks and was responsible for paying back the loan.
The company also sold franchises to companies to operate the display advertising trucks.
The JCIDA's attorneys have been told to try to recoup the money from the unpaid loan, said David J. Zembiec, CEO of Jefferson County Economic Development.
"We're looking at the best way to proceed," Mr. Zembiec said, declining to comment further.
On Dec. 20 of last year, company president Calvin McNeely sold his Wellesley Island home for $925,000. He now lives in Florida, Mr. Zembiec confirmed.
The company leased the outer Washington Street building. It's now empty and remains dark.
Runningboards had four trucks that it drove around town to advertise health offices, different products and a variety of events.
The company's mobile marketing firm was sold to company vice president Zachariah Yelle, who operates at least one of the display trucks, Mr. Zembiec said.
When Runningboards received an initial $200,000 loan from the JCIDA, board member W. Edward Walldroff expressed skepticism that the company could meet its financial projections, $3 million in three years. He only voted in favor of it after Lyle V. Eaton, chief financial officer with the JCIDA's sister group, the Jefferson County Local Development Corp., said the agency has personal guarantees from the company and "significant" assets to collect if the loan was not paid back.
Mr. McNeely began the mobile marketing firm in 2018 with one truck and three displays traveling throughout downtown Watertown.
A year later, the company expanded and moved into the former Bill Rapp Pontiac and Subaru dealership on outer Washington Street, where it had enough space to add software and display ads onto the trucks.
"My goal is to be the fastest growing franchise in America in three years," Mr. McNeely said when the company moved into the outer Washington Street building. "We saw a need and thought we could fill it."
At the time, Mr. McNeely had plans to expand the fleet to 10 vehicles and open a Syracuse location.
He also was a co-founder of Hi-Lite Airfield Services in Adams Center but sold the international airfield maintenance provider to a private equity firm in Florida in 2020.
