House Plans: Van Diest Medical Center

Tuesday, 27 November 2012

Van Diest Medical Center

It was two years ago this July that plans for a proposed company to assemble a line of all electric cars would be coming to Webster City. Joe Fleming and his firm, Auto Manufacturing Systems,Incorporated reached an agreement with EnVision Motor Company to bring as many as 300 jobs to Webster City by the second quarter of 2011. The company has now filed for Chapter 7 Bankruptcy. The City of Webster City is working to get back the economic development loan worth $790,000 that was to have been used for electric car project. On April 2, Fleming filed for bankruptcy in the Iowa Southern District U.S. Bankruptcy Court in Des Moines. Fleming and his wife Marjorie listed four solely owned businesses in the bankruptcy documents. They are A.M.S.,Incorporated, Eagle Manufaturing, Incorporated doing business as Tour Designs,Limited, Access Media,Limited and Drive Tek Incorporated. As a result of the bankruptcy filing, Webster City City Manager Ed Sadler said the city has hired special legal counsel to address the interests in this matter.It's too early to say how much of the money will be recovered as a result of this development.

In August,2010 the Webster City City Council initially awarded an 18 month loan worth $300,000 to AMS. An additional loan was granted in January,2011 for $490,000 to Drive Tek Iowa, formerly known as AMS,Incorporated. The regulation was that the loan was due in six months with the company offering equipment and buildings as collateral.The loan was again extended in August,2011 with the due date this past February 1st. Webster City City Council members approved to extend the note for one more month to March 1. Since no payment arrived, Council members directed City Attoney Gary Groves to write a letter to Drive Tek Iowa concerning the past due note. Fleming has since filed for bankruptcy.