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RooK 3 PAGE 15 <br />Commissioner Macht emphasized that it is in the community's <br />best interest that Piper remain in business and continue to <br />operate. <br />Commissioner Eggert asked what happens if the interest rate <br />should be lowered. <br />Tax Collector Zimmerman replied that the certificate holders <br />have a guaranteed rate of not less than 8%. If the court reduces <br />the rate below 8%, the difference between the actual reduced rate <br />and the guaranteed rate of 8% must be made up by the taxing <br />authority because the certificate holders are guaranteed at least <br />80. <br />Chairman Tippin invited Chuck Suma, president of Piper <br />Aircraft, to express his observations. <br />Chuck Suma told the Board that Piper is working very hard to <br />come out of the bankruptcy. They are not here to persuade the <br />Board to hire an attorney and they realize this is a difficult <br />issue to deal with. <br />Piper is asking for a review of the assessments and a <br />reduction in the interest rate. If there is no reduction, it will <br />create a lot of hardship. They have tried to negotiate a <br />settlement, but it seems the only way to resolve the issue is to go <br />to court. The judge will not allow them to pay the taxes until the <br />issues are resolved. They had to hire appraisers and there could <br />be a $600,000 to $700,000 difference in assessed value. They are <br />trying to be good citizens of Vero Beach and Indian River County, <br />but their creditors are people across the United States, not just <br />local people: <br />Commissioner Eggert felt that while Karl Zimmerman and David <br />Nolte are working with Piper, the Board needs to assure the <br />taxpayers that it is trying to protect them also. <br />Mr. Suma understood that the Board must do what is best for <br />the taxpayers and assured the Board that Piper is not trying to <br />shirk its responsibilities. If the issues cannot be resolved, the <br />parties will end up in bankruptcy court and a decision will be made <br />based on the facts. <br />Commissioner Macht inquired whether a settlement could be <br />'reached today, and Mr. Nolte responded that an offer was made to <br />settle and that the total difference is $300,000. Mr. Nolte felt <br />that a way could be found to settle if the additional $70,000 were <br />thrown into the pot. <br />Chairman Tippin remarked that Vero Beach has been proud of <br />Piper and the Board wishes --Piper success in the future. <br />SEPTEMBER 27, 1994 26 <br />M M r <br />