Vigo County OK with loan to The Mill

Howard Greninger, The Tribune-Star, Terre Haute, Ind.
·2 min read

Sep. 6—Vigo County commissioners on Monday gave their consent to a leasehold mortgage agreement for The Mill, an outdoor music venue at 2403 Prairieton Road.

Terry Modesitt, attorney for the Board of Commissioners, said the consent means the county is okay with the issuance of "a loan for $999,000 for improvements there."

Modesitt said the loan funds issued to Lukebo Inc. will be used to pay Hanning Construction, which built a permanent rooftop for a stage, and for other improvements.

"The mortgage holder would have the right to sublease the property if something happens in the event of a default under this consent agreement," Modesitt said. "It is an SBA (small business administration) loan (based) on a lease ... so, worst-case scenario, they can take everything back and we have our property back, and we would return to unimproved land at that point — back to square one."

Commissioner Brendan Kearns said that "as one of the two commissioners that signed a (land) lease with Tim (Drake), president of Lukebo (Inc.) when he came in, we realize we want to support him" and the property as much as possible. In worst-case scenario, the county would again have use of its land should the lease be terminated, he said.

"So I think it is a good way to support Tim and Kelly (Drake) and everybody associated with The Mill and bring attractions to Vigo County and give that positive recognition that we have been receiving," Kearns said.

The loan to Lukebo does not financially obligate the county.

Lukebo Inc. is owned by Tim and Kelly Drake, a brother-in-law, and other investors.

In other business, commissioners approved an inspection contract for $84,133 with the city of Terre Haute engineering office. It will inspect work on bridge No. 310A and No. 310B, which span Lost Creek along Fruitridge Avenue.

Larry Robbins, county engineer/highway director, said the agreement would save the county money, as inspection contracts generally run 12% to 14% of a project cost, while the city will conduct the work for 10%" of the project cost.

Earlier this month, commissioners awarded a $841,328 contract to Columbus, Indiana-based Force Construction to replace the two bridges. Robbins said barricades for the project will be erected this week, with lane restrictions starting Sept. 12.

Reporter Howard Greninger can be reached 812-231-4204 or howard.greninger@tribstar.com. Follow on Twitter@TribStarHoward.