080717 Closed West RandlemanClosed Session I – West Randleman Business Park— August 7, 2017
At 8:45 p.m., the Board convened closed session on a matter relating to the location or
expansion of business in the area, pursuant to NCGS 143-318.11(a)(4). Commissioners
Allen, Frye, Haywood, McDowell and Kidd were present. Also present were County
Manager Hal Johnson; Finance Officer Will Massie; County Attorney Ben Morgan; Aimee
Scotton, Associate County Attorney; Amanda Varner, Clerk to the Board; and Randolph
County EDC Vice President Kevin Franklin.
Mr. Franklin stated that in 2000, the Randolph County EDC purchased a track of land
located in Randleman for development as an industrial park and the Board of Commissioners
voted to support the project by assisting the EDC with the annual interest payments.
The loan was renewed in September 2013 for a five-year term at a fixed rate of 4.85%,
with annual principal and interest payments. The loan is administered by Capital Bank on
behalf of four partner banks. The current balance of the note is $297,208.21.
Mr. Franklin said that in 2016, the EDC used their fund balance to pay the debt service of
$92,645.54, which depleted the fund balance to the point they are not in a position to make a
full payment this year.
Mr. Franklin reminded the Board that an August 14, 2017, special meeting/public hearing
had already been duly noticed in the Courier -Tribune on August 3, 2017. This public hearing
is to consider the request to pay the principal payment of $74,364.00 by the August 31st due
date. The EDC will pay the interest of $14,614.78.
Commissioner Haywood asked if there was any way to pay off the loan to save money on
the interest they have been paying. Finance Officer Will Massie said the County had
budgeted $197,500 for the MOM Brands/Post incentives but those were not met and the
funds were transferred to the Economic Development Reserve. He said those funds could be
used toward offsetting the total debt. Chairman Allen said the Board may want to consider
this as an option.
The consensus was to cancel the special meeting/public hearing that had been set for 3:00
p.m. on August 14th and have Associate County Attorney Aimee Scotton draft a new notice
to set a public hearing for the September 5th meeting to now consider a "minimum payment
of $74,364.00" and the Board could discuss other options at that time.
At 8:56 p.m., closed session ended on this topic.
David Allen, Chairman
Stan Haywood
Maxton McDowell
Darrell L. Frye
Kenny Kidd
Amanda Varner, Clerk to the Board