MITCHELL COUNTY BOARD OF COMMISSIONERS

 

SPECIAL SESSION

 

MINUTES

 

MARCH 28,2005

 

 

 

 

 

NORTH CAROLINA

 

MITCHELL COUNTY

 

 

 

The Mitchell County Board of Commissioners met in Special Session on March 28, 2005 at 6:00 p.m. in the Commissioners’ Conference Room, Administration Building, Bakersville, NC.  Those present for the meeting were Keith Masters, Chairman; Ken Hollifield, Vice-Chairman; Phil Byrd, Member; Mike Hensley, Member; Jim Saylor, Member; and Phil Castro, Acting County Manager.   Also present were Lloyd Hise, County Attorney; Mavis Parsley, Finance Officer; Steve Murphy, Reporter with WKYK and WTOE and Nathan Hall, Reporter with the Mitchell-News Journal.

 

1.   CALL TO ORDER – Chairman Masters called the meeting to order at 6:00

     p.m.

 

2.   INVOCATION – Commissioner Hollifield gave the invocation.

 

3.   ADDITIONS/CHANGES TO THE AGENDA - None

 

4.   APPROVAL OF MINUTES - None

 

5.   RESOLUTIONS/PROCLAMATIONS/ORDINANCES - None

 

6.   ITEMS FOR DISCUSSION/DECISION

1. USDA Rural Development Loan Program – Chairman Masters informed

the Board that Clerk to the Board Young had contacted Marvin Hutchinson from USDA Rural Development concerning their loan program.  Last Thursday, Acting County Manager Castro, County Attorney Hise, Finance Officer Parsley and Clerk to the Board Young had met with Mr. Hutchinson to discuss this process.  

 

Finance Officer Parsley stated that Mr. Hutchinson has told the group there was money available and the County could make an application to obligate money to build a jail facility.  Normally the pot of money is not as large as it is now, due to special legislation regarding the storms in September of 2004.  She explained there was a very short window for the money to be obligated.  Mitchell County needs to make an application and get the money obligated by July 1, 2005.  In the event that North Carolina or any other state that has not obligated their money it is turned by into the federal government.  The interest rate is fixed at 4.25%.  The term is 40 years with no pre-payment penalty, which means the county could pay the loan off early if it was so desired.  Finance Officer Parsley stated this would be 100% financing which means any cost related to building the jail could be put into the one loan.  If the Board decides to proceed with the loan application, the site has to be approved through the State Clearinghouse to make sure that it does not have any environmental impacts.  This is a 30-day process and once the clearinghouse has approved the site, the loan application process would begin.  

 

Mr. Hutchinson stated that once the county applies to USDA and they obligate the loan you would be guaranteed  the 4.25% interest rate.  Once the money is obligated, a part of the application package would be to have an architect or engineer project the number of beds and a cost for dollar per bed or square foot.  Once a preliminary cost has been developed, the interest on the construction loan and a 15% contingency would be added to determine the cost of the jail facility.

 

Chairman Masters asked what the starting point would be if the County decided they wanted to apply for the loan.

 

Mr. Hutchinson stated the starting point would be the environmental impact study.  There is a five-page form to be sent the State Clearinghouse, which they will send out to various agencies for their approval.  Once the Clearinghouse has given the site approval then the county would start the loan application.  At this point the County should be trying to hire an architect or engineer to start working on the plans and specifications.

 

Commissioner Byrd asked what kind of collateral would USDA require.  Mr. Hutchinson stated they would use the land the jail actually sits on, the structure and a lien against the county’s income stream.  

 

Mr. Hutchinson told the Board the money could set idle for up to 2-years without any interest.  He informed the Board the county would have to contact a minimum of two lending agencies and apply for the same project that you are applying for from USDA and be given rates and terms that you do not feel that you can repay.  

 

Commissioner Saylor asked if work on the project had to be started within a certain timeframe in order for the money to stay approved.  Mr. Hutchinson said there was.  He said that there had to be some justification for the project.

 

Further discussion was held.  

 

Chairman Masters thanked Mr. Hutchinson for coming to the meeting and told him the Board would take all of tonight’s discussion into consideration and let him know their decision.

 

7.   PUBLIC HEARINGS/MEETINGS - None

 

8.   REPORTS/PRESENTATIONS - None

 

9.   APPOINTMENTS - None

 

10.   RELEASES/REFUNDS - None

 

11.   COUNTY MANAGER’S REPORT - None

 

12.   BOARD COMMENTS - None

 

13.   CLOSED SESSION - None

 

14.   CITIZEN & AUDIENCE COMMENTS - None

 

 

15.   ADJOURNMENT – Commissioner Hollified moved to adjourn the meeting.  

       Commissioner Hensley seconded the motion and it carried unanimously.

 

       The meeting adjourned at 6:45 p.m.

 

 

MITCHELL COUNTY BOARD OF COMMISSIONERS

 

 

 

 

__________________________________

Keith Masters, Chairman

 

 

__________________________________

Ken Hollifield, Vice-Chairman

 

 

__________________________________

Phil Byrd, Member

 

 

__________________________________

Mike Hensley, Member

 

 

__________________________________

Jim Saylor, Member

 

 

 

ATTEST:

 

 

________________________________

Kathy Young, Clerk to the Board