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Sylva leaders extend Southern Lumber loan
By Justin Goble
Sylva leaders June 15 agreed to give Southern Lumber Co. more time to pay back money it owes to the town.
Town board members voted to extend a loan contract between the company and the town during their meeting last Thursday. They acted on a recommendation from the town’s revolving loan committee, which voted unanimously to extend the loan another three years during their meeting June 8.
The new agreement stipulates interest on the loan will rise from its current rate of 4 percent to 5 percent during the first two years. If the money is not repaid by the beginning of the third year, the interest rate will rise to 10 percent.
As part of the plan, Southern Lumber is responsible for hiring an attorney for the transaction, acquiring title insurance and paying all associated costs involved with the extension process.
Southern Lumber borrowed $500,000 from Sylva’s Urban Development Action Grant (Revolving Loan Fund) in May 1999 to construct a new store. Under the agreement, the company had until June 1 to repay the town.
After the deadline had passed, owner Tom Stovall requested another 11 years to pay the $374,665 he owes. While members of the revolving loan committee said there would be no problem renewing the loan, they didn’t want to wait that long for it to be paid off.
The loan renewal had to be approved by the town board before it could go into effect.
In other business June 15:
– Board members unanimously passed a cost schedule for the public works department.
According to town Manager Jay Denton, the schedules are used for condemnation and hazard mitigation projects. The fees are then collected as a tax lien placed on the property.
Denton also said the fee schedules could be used for when the public works department is hired out to other towns to help with projects.
The department will charge $25 per person per hour during normal work hours, and $37.50 after normal business hours.
Equipment use is also part of the new schedules, and include charges (per hour) for a backhoe, $45; bucket truck, $60; dump truck, $40; knuckleboom truck, $60; trackhoe, $50; water truck, $40 (plus water charge); ton truck, $40; weedeater or blower, $15; and a mower, $40.
– Planning director Jim Aust reported that the planning board was working on plans for bringing Allens Branch under an extra-territorial jurisidiction.
Aust said he has been in contact with residents in the area, and is hoping to set up a community meeting at Wayside Baptist Church to discuss the matter further.
As for plans to bring the Yellowbird Branch area under an ETJ, Aust said there may be some problems with the town of Dillsboro. Due to the proximity of the area to Dillsboro, Aust said that town may have plans for an ETJ, and Sylva leaders would have to check on those plans before proceeding.
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