11/26/1996 - Laserfiche WebLink

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Kenneth S. Knigin thanked the Commissioners for allowing him to appear and advised that he and Mr. Norman Lipshie were present to clarify recent local newspaper articles and other stories concerning INRIVCO and the proposed industrial park at the Landfill. He assured the Board that he and Mr. Lipshie "stand by every word of" their proposal to Indian River County; however, Mr. Slomowitz has withdrawn from participation in the Indian River County project and other joint projects. Mr. Knigin explained in detail the roles and qualifications of the original three partners. Mr. Slomowitz was included in the group for his financial worth and was to have supplied the financial backing for the project. However, Mr. Knigin thought an old quote might apply: "Sometimes you can't separate a man from his wealth". Mr. Knigin stressed that Mr. Slomowitz was to have contributed the equity investment of $1 million toward the venture before getting his stock. Mr. Knigin proceeded to give a lengthy, sequential narrative telling of a memorandum agreement which had been drawn up in late July 1996 to memorialize the understanding the three had reached. It was sent to Mr. Slomowitz for his signature, but Mr. Slomowitz' attorney drew up a joint venture agreement, which he (Slomowitz) had signed and sent to Mr. Knigin in September asking for his and Mr. Lipshie's signatures. Meanwhile, Mr. Knigin and Mr. Lipshie had already substantially invested in the venture. In a letter written November 5, 1996, to Mr. Slomowitz, Mr. Knigin advised him that cash flow needs had grown and in order to acquire an equity interest in the company (INRIVCO), it would be necessary for Mr. Slomowitz to now invest $1,500,000. In his November 12, 1996 response, Mr. Slomowitz advised that he found it necessary to withdraw from the various projects and that he expected Mr. Knigin to notify those concerned and that he (Slomowitz) intended to do likewise. It was apparent, due to the swift publication of the newspaper article, that Mr. Slomowitz had immediately notified the local newspaper. Mr. Knigin explained that due to receipt of the letter late in the week with the intervening weekend, regrettably it was impossible to notify the Board before they read about Mr. Slomowitz' withdrawal in the newspaper. Mr. Knigin mentioned that they have three other industrial parks in the planning stages, two in New York and one in Oregon. He stressed that other financing will be available for the project. Mr. Knigin suggested that the real concern of the Board was whether the project has the potential for success. He gave many assurances that it does and that it will be developed correctly. 27 November 26, 1996 �Gor 99 rnf.947