The City of Salem has filed a civil lawsuit against Klassic Kollections II and four of its principals in an attempt to recover $450,000 in loan money given to the now defunct company as incentives to get them to move to Salem.  

The complaint filed in Lawrence County Circuit Court in Bedford, Indiana seeks to have a judge find the companies principals Laverne Lessig, Randy Martin, Lisa Martin and Cindy Rout in breach of the loan agreements and guarantees.  The city then seeks to have the judge foreclose on the security interests and to have the collateral sold at sheriff's sale to help satisfy the judgement.  All four live in the New Bedford area.  

The city contends Klassic Kollections II is in default of the CDAP agreement for failing to apply all disbursed funds toward financing the project as well as not maintaining business operations or creating and retaining the promised jobs.  The suit says the company has failed to pay the balance due under the CDAP agreement.  Once in default, the interest rate on the $275,000 low interest loan increases from 3% to 12%.  

The portion of the suit dealing with the $175,000 Tax Increment Financing District Agreement, has some additional allegations.  It claims Klassic Kollections II is in default because it failed to spend all dispersed funds on TIF eligible activities and failed to provide Salem with evidence of costs incurred on the project as well as required payroll information.  

Salem City Manager Bill Gruen says while nothing is certain, there is optimism that collection efforts will be successful in recapturing at least a portion of the loan proceeds disbursed.  He notes it is the policy of the City of Salem to pursue recapture of defaulted loan proceeds for as long as it is financially responsible.  

The city is utilizing the Koch Law Firm in Indiana to handle the litigation.  

Klassic Kollections was given the incentives to open a business to make personalized Italian Ice Blocks in a leased building in the Westside Industrial Park.  Klassic Kollections later abandoned their operation and the city has been seeking to recover the loan money made through the CDAP Low Interest Loan and Tax Increment Financing programs.  The company had promised to create 140 jobs through the business within a two year period, but were closed in less than a year after getting the loans.  

VANDALIA (AP) - The Fayette County Coroner says the five people killed and six hospitalized after a van careened off Interstate 70 near Vandalia were men returning from a California religious event.

Bruce Bowen tells The Associated Press he's trying to contact relatives of the five men who died at the scene of the wreck Monday morning, but is not yet releasing their names.  He says the driver is among the six people hospitalized.

Illinois State Police say nine in the 15-person van with Maryland license plates were ejected, leaving Bowen to question how many of the occupants were wearing seat belts.
 
Fayette County Sheriff's deputy Shawn Carter says the van apparently first traveled onto the grassy median, then swerved back across the eastbound lanes before overturning.

Fayette County Hospital spokeswoman Lyn Gartke says four survivors taken there were in fair condition later Monday. The medical statuses of the other two survivors taken to Greenville Hospital weren't clear.

VIENNA, Ill. (AP) - The Johnson County Board of Commissioners has passed a resolution supporting a statewide moratorium on high-volume oil and gas drilling.

Board Chairman Jeff Mears says commissioners voted 2-1 on Monday to support a one-year pause before hydraulic fracturing, or "fracking," begins. He says residents need more time to learn about it and county officials want to prepare for the affect infrastructure, such as roads.

Officials in Hardin, Jackson, Pope and Union also support a moratorium.

Bills calling for a 2-year moratorium have stalled in the House and Senate. Another bill to regulate fracking has received widespread lawmaker support.

Fracking uses high-pressure mixtures of water, sand or gravel and chemicals to crack rock formations and release oil and natural gas. Supporters say it'll create thousands of jobs. Opponents worry about pollution.

A 27-year-old Centralia woman has been arrested by Centralia Police on drug charges and an outstanding Clinton County warrant.  Carolyn Pribble of East 12th was taken into custudy for possession of a controlled substance and possession of drug paraphernalia.  

26-year-old Joshua Schulte of Centralia was being held in the Marion County Jail after being arrested by Centralia Police for possession of controlled substance and drug paraphernalia.  

Two others were still being held in the Marion County Jail on an outstanding traffic warrant.  They are 45-year-old Christine Burchell of West Kell in Centralia and 21-year-old Angelica Gonzalez of Centralia. 

Marion County Sheriff's Deputies say they have recovered an International Scout Side by Side that was stolen from property owned by James Rose of Salem from his farm on the Alma Hatchery Road.  Deputies spotted someone riding the vehicle on Ruble Lane southwest of Salem.  The man reportedly got off the vehicle and successfully ran on foot.  A second man who was riding along side him on another ATV was questioned, but released.  

A 25-year-old Centralia man has been arrested in connection with the theft of six motors from oil batteries in the southern part of Marion County.  

Jordan Laws of Cedar Creek Road was taken into custody for felony theft after he and another man were identified as suspects when two of the motors were brought to a salvage yard.  The investigation began on Saturday after Graham Oil Company had reported two motors stolen from an oil rig off the Myers Road in rural Walnut Hill.  The salvage yards were contacted by sheriff's deputies to see if any motors had been salvaged.  

The department was later notified by Kell East Incorporated Oil that one of their motors was taken from an oil field site off Oak Road in rural Kell.  One of the two motors brought to the salvage yard was identified as the one stolen from Kell East Oil.  

As other oil companies were contacted, it was learned three motors had been stolen from sites off Synder Road in rural Sandoval operated by Oelze Equipment of Centralia.  One of those was identified as the other motor taken to the salvage yard.  

Deputies when they questioned Laws he allegedly admitted his involvement.  He provided information that the other four motors were taken to a Mt. Vernon Salvage Yard.  The person reportedly with Laws is still being sought for questioning.