Firefly Payoff Costs Peoria Millions

By WEEK Producer

July 23, 2010 Updated Jul 23, 2010 at 6:31 PM CDT

Peoria city and county believe they can put the Firefly Energy bankruptcy behind them with a two and a half million dollar payoff.

The city and county guaranteed a 6-million dollar loan to the startup company three years ago.

But Firefly filed for bankruptcy and went out of business in March of this year.

In a release Friday, the city of Peoria say the city and county have negotiated a deal to jointly pay half a million dollars to the Firefly Bankruptcy Estate and 2-million dollars to PNC Bank.

The city says it should save taxpayers money. The payoff is on next Tuesday's city council agenda.