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Proposed EDC budget swells
By Justin Goble
Members of the county’s Economic Development Commission have developed a proposed budget for the next fiscal year, and they’ll have more money to work with than in recent years.
The bulk of the $337,989 proposed budget is a $300,000 transfer from the Jackson Development Corporation. According to EDC member Tom McClure, that money stems from a July 2001 sale of the former Buster Brown building and 5 acres of land surrounding it.
“The mortgage came due from that sale,” McClure said. “That money gives us a healthy outlook for the year.”
Title to the facility, which was purchased for $550,000 in May 1997 by the Economic Development Commission and the town of Sylva, was transferred to the JDC in late 1998. Sylva’s interest was secured by a $300,000 deed of trust, which was paid in full ($304,000) in June 2001 after the property was bought by Diversified Exposition’s, Inc., a company located in Cullowhee.
County commissioners, using funds borrowed from the EDC, put up the remaining $250,000.
Diversified paid $625,000 for the 40,000-square-foot plant and five acres of property.
EDC members have allocated all $300,000, along with another $10,498, to site acquisition, development and capital improvement projects.
Other revenues for the year include a $2,000 contribution from the town of Sylva; $1,000 from Dillsboro; and $500 each from Webster and Forest Hills.
Expenditures include $1,000 for travel and professional development; $5,000 for marketing; $6,000 for contracted services and auditing; and $5,000 in industry appreciation gifts.
This next budget is a far cry from last year’s $62,588.45, which was the first devised after Jackson County Commissioners withdrew from the commission in January 2005 and cut off financial support. Southwestern Community College followed suit and withdrew in February 2005.
“It’s the first time in several years that we’ve had a substantial amount of money to work with,” co-chairman and Sylva Mayor Brenda Oliver said.
Though members were happy to see such a large increase in their operating budget, the news came too late for them to pass the document before the state’s mandated July 1 deadline. As a stop-gap measure, EDC members unanimously voted to use its current budget until a public hearing can be held.
EDC treasurer Jay Coward said he had not been able to devise a budget in time to meet the state-mandated July 1 deadline because county commissioners only recently returned the EDC’s financial records.
The files in question were seized 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 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.
Commissioners made the decision to seize the files after they accused McClure of creating “budget irregularities.” Auditor Mitch Crisp of Dixon Hughes conducted an audit of the EDC for the county last January. His final report stated he had found no evidence of any financial wrong-doing.
EDC officials requested the seized documents be returned in February 2005, but commissioners declined to do so.
The EDC will have a budget hearing on Monday, July 10, at 5:30 in Sylva’s Town Hall. Officials are expected to pass the document during a called meeting immediately following the hearing.
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