McHenry County Blog

Maybe I should have just titled this little tidbit from the County Board minutes:

Revolving Loan Fund – Bad Debt Expense,

but it seemed to need a political context.

The entire budget amendment passed last Thursday is below, but, in summary, a $200,000 loan was made with county-controlled funds in December, 2004, to a start-up company called Contempos Industries, collateralized only by its inventory.

Less than a year later the firm was in bankruptcy court.

The State’s Attorney’s Office advised the county board to write off $177, 470 of the $200,000 loan—last December 1st. That right before the filing of petitions for re-election.

Now, let’s see.

This story’s appearance might have jeopardized the re-nomination of some county board members, had it seen the light of day in a timely basis.

But, action taken two days after that primary election—which is when the county board voted to take the financial bath—would have the minimum political fall-out.

Only the Democrats could make hay out of it this fall…and we know how much chance it is that such a challenger will make a close race of any of the county board contests.

The Illinois Secretary of State’s Office reports that Contempo Industries is headed by Ken Pawela, 1704 Ginko Court in McHenry. The firm’s location is 455 Borden Street in Woodstock. Richard Szyzka of 36 Pheasant Run in Hawthorne is listed as the company’s secretary. It was incorporated in late July, 2004.

In a December 5, 2005, report from the “Troubled D Company Reporter” it was listed as doing business as both Woodstock Gardens and Contempo Products.

To see the minutes, click here.