Sylva leaders to seek speedy repayment of Ashley loan

By Lynn Hotaling

So said Sylva board member Eldon Cable last week (Oct. 3) when Mayor Brenda Oliver informed board members that Ashley Co. owners wanted to continue making monthly payments on their loan from the town despite plans to cease operations here.

"The board must decide whether to continue to accept monthly payments or request full payment," Oliver said, prompting Cabeıs response.

Other board members concurred and voted unanimously to seek full payment of the $187,000 Ashley owes the town.

"I feel like the money was lent for the benefit of the town and county, and I donıt feel like it should leave the town," said board member Eldridge Painter.

"It was a low-interest loan made with the purpose of creating jobs in Jackson County, and we need to get our money now," said board member Maurice Moody.

Painter and Moody expressed concern about the security of the collateral (equipment) once Ashleyıs operations are moved to the Greenville, Ill., offices of DeMoulin Bros., Ashleyıs parent company.

Ashley and DeMoulin announced a merger in January 1999. In connection with expansion at the Sylva facility, the two borrowed $333,500 each from Sylva and Jackson County through the revolving loan program, a system of low-interest loans by which the town of Sylva and Jackson County assist companies in job creation and economic development.

County officials also discussed Ashley Oct. 3 but reached no decision on whether to call their loan due. Commissioners are expected to discuss the matter further during a called meeting tonight (Thursday). Ashley has an outstanding balance of some $190,000 with the county.

DeMoulin officials announced last week that Ashley would close by early December at a cost of some 55 local jobs. All textile operations will be moved to DeMoulin plants in Greenville and Centralia, Ill., said CEO Bill Marsden.

In other business Oct. 3:

- Sylva board members exercised a 90-day option clause in their trash and recycling contracts with Country Collections, putting the company on notice that the contracts would be cancelled if the haulerıs performance did not improve.

Cabe recommended the action on behalf of the townıs three-member sanitation committee, which discussed concerns with the hauler Sept. 26.

The town contracts with Country Collections for commercial recycling collection and residential trash and recycling pickups.

- Based on another recommendation from the sanitation committee, board members agreed to move forward with sewer line construction in the Moody Bottom area. Town officials voted unanimously to choose an engineer to develop proposals for extending sewer lines to Mills Branch, Allens Branch and Mitchell Road.

Preliminary estimates place the total cost of the project at some $525,000.

Board members heard from Allens Branch resident Sarah Altman about ongoing septic tank problems at her familyıs home. Altman requested board members find a way to hook her house onto a sewer line as soon as possible.

Mayor Oliver asked the townıs sanitation committee to look into Altmanıs request.

- Board members accepted a bid from Moore Farm Equipment to supply an E-One rapid response vehicle for the Sylva Fire Department at a cost of $126,561. The four-wheel drive E-One will replace the departmentıs outdated mini-pumper.

Moore was the low bidder. Other bids ranged from C.W. Williamsıs $132,883 to Triadıs $169,018.

In other fire department business, board members approved a funding proposal for the Sylva Fire Department that provides for proportional funding in the yearly budget by the towns of Sylva, Webster and Dillsboro based on each townıs percentage of ad valorem taxes. Any revenues in excess of the fire department budget will go into a capital fund.

- Zoning administrator Jim Aust reported on his departmentıs successful effort to abate a health and safety hazard at the old East Sylva Church on East Sylva Circle (behind the ABC store).

Citing numerous calls and complaints of vagrants on the property and the hazard it posed, Aust moved forward with cleanup efforts, clearing brush and securing the building, which is owned by Fly By Night Investments, c/o Carol Delucci of Clayton, Ga.

The parcel is valued at more than $100,000, Aust said. Condemnation proceedings are under way to recover some $4,500 the town spent on the cleanup effort plus about $2,800 in back city and county taxes.

- Board members set a public hearing on two street closings for 6:30 p.m. Thursday, Nov. 7, prior to their next regular meeting.

At that time they will accept public comment on closing Webster and Sylva streets, which were platted but never built.

The request to close Webster Street came from Lynley Todd of Brevard, who owns lots 3 and 4 of the A.J. Dills subdivision off Hampton Street. The existence of the right of way is preventing construction on lot 4, Toddıs letter said.

After examining maps that accompanied Toddıs request, board members elected to proceed with closing Sylva Street, proposed to connect Webster with East Central, at the same time.

Back to Archive: 10/10/02.