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EDC to seek return of files seized more than a year ago
By Justin Goble
After more than a year, officials from the Economic Development Commission are still waiting for the return of files seized by county commissioners.
Where these files are and how they can be recovered was a main topic of discussion during the EDC’s meeting Monday night (Feb. 27).
The files in question (most of which dealt with the EDC’s financial activities) were seized on Jan. 12, 2005, after county commissioners voted unanimously to proceed with an audit of the county’s economic development office and the EDC; remove then Chairman Tom McClure from all appointed positions; dissolve its revolving loan committee; suspend participation in the EDC; and begin foreclosure on QC Apparel and all other outstanding loans.
Auditor Mitch Crisp of Dixon Hughes was called in to conduct an audit of the EDC for the county last January. His final report stated he had found the commission not guilty of any financial wrong-doing.
EDC officials requested the seized documents be returned to the commission in February 2005, but commissioners declined to do so. Now, more than a year later, officials still don’t have the information needed to conduct an audit of their own.
EDC treasurer Jay Coward said Crisp would not conduct an audit for the commission until it comes into compliance with regulations set forth by the Local Governments Commission. Though board members were unclear whether it was legally necessary to comply with LGC guidelines before an audit could begin, Coward said there would be no harm in doing so, and board members voted to begin that process.
While that first step was taken, Sylva representative Chris Matheson pointed out that an audit would be nearly impossible to complete without the seized files.
“Where are the files?” Matheson asked. “If we don’t have those, our hands are tied. How do we handle this situation?”
Sylva Mayor Brenda Oliver, co-chairman of the EDC, suggested talking to Commissioner’s Chairman Brian McMahan to see how the EDC should go about obtaining the documents.
“He could give us some guidance,” Oliver said.
EDC members said they don’t want to antagonize commissioners, but seek cooperation in terms of both money and participation.
“It’s time to go back to the county,” Coward said. “We can tell them what we’re doing and request that they put us back into the budgeting process. And we can invite them back to the EDC as well. I think enough time has passed.”
Coward reported the money remaining in the EDC’s budget is currently $17,034.76. This amount has stayed the same since the county pulled out of the EDC and cut off its financial support.
Since county officials are nearing approval for next year’s budget, Matheson said the EDC needs to open up a line of communication between the two entities in an effort to get the necessary funding.
“They’re approving a budget for a year,” Matheson said. “If we don’t get in now, we’re going to have to wait.”
Oliver said she would meet with McMahan to try and get the EDC on commissioners’ March 20 agenda.
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