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County closes grant program on shuttered golf car manufacturer

by Seaborn Larson
| June 24, 2016 10:12 AM

The Lincoln County Commissioners on Wednesday unanimously voted to close the Community Block Development Grant program issued to the LiV Golf Cars in 2013 after the company failed to execute it’s plan of developing 22 local jobs. Commissioner Mark Peck was not in attendance at Wednesday’s meeting. Kootenai River Development Council, the economic development organization that first administered the grant, requested that the grant program be closed.

“This was a startup company that was taking on national competitors with disruptive technology,” said KRDC Director Tina Oliphant. “You never understand the complexity, or how to anticipate the cost of that complexity, as an entrepreneur.”

The development council decided to the close the grant program out after LiV Golf Cars expended its entire loan amount without generating the revenue to repay the full $368,000. The Kootenai River Development Council has retained an attorney, Jay Johnson, to obtain the amount owed from LiV.

Jon Hoster, owner of the former golf car manufacturer, was not available for comment at press time.

LiV Golf Cars was expected to create 22 jobs by June 2015. When those jobs were never added to LiV’s payroll, the company requested a one-year extension on its payments until June 2016 as the Kootenai River Development Council monitored the company’s progress.

In 2013, LiV Golf Cars was awarded and expected to repay $368,000 of a $400,000 loan to grow its business to 22 employees in Lincoln County. The remaining $32,000 was provided to the Lincoln County Port Authority for administering the grant. LiV hoped to disrupt the golf car market with it’s lithium-powered, light-weight golf carts, which it said would last longer and produce fewer impacts than lead-based battery models. But, LiV’s market success never materialized and no more than three jobs were ever created.

The car manufacturing company did make one payment on its loan, $2,239, leaving an outstanding balance of $365,761.

Oliphant said closing the grant out means the program is no longer keeping records of LiV Golf Cars’ progress as a company. The funding, which is provided to the state, and then allocated toward housing, public infrastructure and economic development, was awarded to LiV in hope that its potential market success would drive job creation and pad the general tax base.

“It was a pretty bold move,” Oliphant said. “But if it had been successful, everyone would have one.”

In 2014, Kootenai River Development Council had improved on the 16,800-square-foot facility, known as the central maintenance building located in the industrial park south of town. That same year, LiV began receiving parts from China to assemble in Libby. During the first few months, assembly was completed by the owners, not the employees, according to a county report. By June, 2014, LiV had hired two assembly employees while owners visited golf courses and launched a marketing effort.

LiV closed on a few small sales, 12 golf cars in total, in 2014, but lost out on an 80-unit sale later that year.

In 2015, LiV received two large fleet orders, according to the county report, but those sales were delayed when leasing issues arose with different golf courses and the LiV Golf Car, Inc.owners decided to redesign the carts to look less similar to other cart models.

In late 2015 and early 2016, LiV owners were searching out an investment group as capital dwindled, but was unable to secure an investment partner. Three months ago, LiV vacated the building space and shut down the operation.

Oliphant said the central maintenance building that housed LiV’s short-lived project is now available for lease.

Reporter Seaborn Larson may be reached at 758-4441 or by email at slarson@dailyinterlake.com.