City’s loan fund helps Riley grow
When Todd Riley wanted to grow his business, he couldn’t think of a better lender to finance the expansion than the very city his business has called home since its doors opened in 2001.
“I don’t know of any banks right now that are doing four or five percent commercial loans,” the owner of Riley Tool and Machine said last Friday, lauding the City of Marion’s economic development financing arm that has allowed him to expand his machine shop to an international business.
It’s not that Riley, 39, is knocking the banking industry, but in business, money saved is money earned. In this case, he earned several thousand dollars in savings.
By using the City of Marion Revolving Loan Fund, an economic development tool that allows the city to finance business growth at low interest rates, Riley saved $7,500 or more interest over the five-year term of the loan. A conventional bank loan would have charged a much higher interest rate.
When Riley was approved for the city-financing, his business was fledgling, only three years old.
After working for years as a tool and dye maker, he wanted to establish himself in Marion by opening his own business and growing it into a secure future for himself and his family. So, in 2004 he approached the city about backing his plans to purchase new equipment and reach new customers. Since being granted $60,000 from the city’s revolving loan fund in 2005, his business has flourished.
He now machines and welds for businesses across the nation and into Canada.
“The city took that risk, that is what I am so grateful for,” Riley said Friday, as he showed City Administrator Mark Bryant around his plant off Moore Street.
The revolving loan fund was established in 1988 from a $500,000 grant from Kentucky’s Department of Local Government. The fund has grown to about $750,000. The fund can be used only as an economic development tool. It is a self-replenishing pool of money, utilizing interest and principal payments on old loans to issue new ones.
Riley’s bread and butter has become the tire industry, or rather the shredding of tires for recycling purposes. Riley and his 11 employees toil with welders, grinders and machining equipment to produce razor-sharp industrial blades for tire shredding. His proprietary process for sharpening those blades makes it possible for waste tires to see another life as rubber mulch and fuel for power-generating plants.
At one time, Riley was running multiple shifts and employing as many as 23 workers. But the extra shifts and management of those hours were not the most efficient way to carry on his business, so he streamlined to his current operations.
His business has become so successful that Riley acquired a second loan from the city through the same fund to physically expand his plant. With the money, he added self-designed welding, grinding and machining booths that make the job easier and reduce health hazards for his employees.
As Bryant toured the facility Friday with workers scurrying about in the midst of the busiest season for the company, he complimented Riley on his business-sense, even offering more loans the entrepreneur may need to sustain or grow the pace.
“Like I said, don’t hesitate to approach us again,” Bryant told Riley with a handshake.
Currently, the city has a half-dozen outstanding loans to local businesses through the revolving fund, but more capital is available to help others. Riley said the initial application process was a bit more complicated than what financial institutions may require, but his second loan was much easier to land.
“It was a little bit more work the first time,” Riley said. “The second time it was like gravy.”
Bryant said the city must be protective of the self-sustaining fund and requires a pretty careful vetting process for granting loans. The loans, he said, must be used to stabilize or increase the workforce at the applicant business.
The city’s revolving loan fund was also used in 2001 to help D&D Automation establish its operation from the ashes of Tyco. D&D initially employed about a dozen workers and later was absorbed by Safetran Systems. Safetran has now grown to employ nearly 100, with the addition of 150 permanent jobs announced last month.
Prisoner captured after leaving work detail
An inmate who walked away from his work detail on Crayne Cemetery Road Tuesday morning was captured without incident less than an hour after he escaped.
Ryan Knight, 20, of Princeton was on work release from the Crittenden County Detention Center about 8:30 a.m., when he slipped away from his supervisor and work crew and got into a vehicle waiting for him at Crayne Cemetery, said Jailer Rick Riley. Knight was located in a Ford Explorer which was parked in a cornfield at the intersection of Crayne Cemetery Road and Ky. 902 north of Fredonia. The vehicle was spotted by Lt. Kevin Rogers, a Kentucky Vehicle Enforcement officer, who had responded to the area to help search for the escapee.
Knight and a female accomplice, identified by Kentucky State Police as 18-year-old Sarah C. Sorrells of Eddyville, were inside the Explorer, which was parked less than four miles from where he escaped from the work detail. Authorities were not sure why the vehicle was backed into the cornfield. A chain saw, which Knight had been using to trim ice storm debris and hanging limbs from the right-of-way of the county road, was found in the back of the SUV.
The county jailer said Knight and three other inmates were working with county road department employee Mike Weldon when the escape took place. County road department employees who supervise work releases program are not armed nor trained to confront escapees, said Crittenden County Judge-Executive Fred Brown.
Brown commended jail personnel and law enforcement agencies for responding and apprehending the escapee in a matter of minutes.
Knight was cutting limbs and trees with the chain saw and the rest of the crew was following behind him with a chipping machine pulled behind a county work truck.
"They were in those sharp curves near the cemetery and (Knight) got out of their sight," Riley said.
The jailer explained that Weldon went to look for Knight when he no longer heard the chain saw running. When he realized the inmate was gone, he immediately called for help.
Riley said standard procedures kicked into gear and the inmate was located in about 45 minutes with help from area law enforcement agencies.
"We did everything right and were able to get him quickly," Riley added.
Knight is serving a five-year sentence on a Crittenden County burglary conviction. He is also facing a charge of first-degree criminal mischief in Caldwell County for which he has not been tried.
Riley characterized Knight as a "very good worker" who was assigned to the Level 1 Work Release Program, which means that neither a deputy jailer nor guard is required for him to be working outside the jail. Only a job supervisor is necessary for Level 1 work release inmates, Riley explained.
Knight has been incarcerated at the jail since April 7 and has given no indication that he was a flight risk or security problem, the jailer said.
Knight is the first Crittenden County Detention Center inmate to walk away from a work release program since the jail opened in January 2008.
Riley said that Knight, who has family living near Fredonia, was very familiar with the area where he was working on the road crew. The jailer said Knight had apparently pre-arranged for the female accomplice to meet him at the cemetery.
"From what we've found out, he was planning to go to Baltimore," Riley said.
Knight is charged with second-degree escape and theft for taking the chain saw belonging to the county road department. Sorrells is charged with second-degree complicity to escape. Both were lodged in the Crittenden County Detention Center.