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County rejects Stovalls' request to sell Cane Creek property

By Lisa Majors-Duff
On the recommendation of their Revolving Loan Committee, Jackson County commissioners voted not to approve a request from Southern Lumber to release a lien on 83 acres company officials had hoped to sell.

In a special meeting of the committee held June 19, members voted unanimously not to approve the request, committee Chairman Tom McClure said. He did not elaborate on the reason for the decision.

The county's lien on the Cane Creek property came about in April 1999, when Tom and Phil Stovall, owners of Southern Lumber, used the land as collateral on $1.6 million they borrowed to expand their home improvement business in Sylva.

If the entire tract used as collateral - some 452 acres - were sold at the purchase price of this deal - about $1,500 per acre - not enough funds would be generated to retire the loan, said county finance officer Darlene Fox.

The county's $218,000 loan to the Stovalls represented only a portion of the total borrowed. Macon Savings Bank and the town of Sylva made up the difference. The funds were used to build a 36,000-square-foot home center on Skyland Drive, and 25 jobs were predicted to be created.

The Sylva Town Board also rejected the request during its meeting Tuesday.

Tom Stovall declined to comment on the board's decision, except to say that there was no need on his part to sell the property.

In other business discussed last week, board members decided to include a second story on their new jail as an alternate in the bid process. A shelled-in second story is estimated by architects to cost $585,000 and could be used to house other county offices in addition to the Sheriff's Department, Chairman Jay Denton said.

"I have a concern about the appearance of that building," Commissioner Conrad Burrell said. "It seems if we could do it while the contractor is here, it would save us money in the long run." Commissioners put off once again any decision on employing a project expediter to oversee the jail construction project. A project of this size, about $4.8 million, may not generate the savings a larger project could, Denton said.

"We thought we had some good reasons to go with a project expediter, that they would get the job done faster and save us money," said Denton. "But I've been told that any good general contractor can read specs and follow schematics."

In other jail business, board members approved a one-year, $38,000 contract with Dr. Steven Dewees of Sylva to serve as jail doctor. The contract with Dewees includes the use of a physician's assistant and is estimated to be more cost effective than transporting prisoners to the hospital emergency room, Denton said.

Board members also approved a three-year solid waste management plan update. The plan is required by state statutes as part of a comprehensive 10-year plan to improve solid waste management systems, better utilize natural resources and control costs. A landfill fee ordinance presented with the county budget was also approved. This document outlines the cost to businesses and property owners to dispose of garbage.

Commissioners did not approve a solid waste management ordinance, but instead referred several questions concerning the document to their attorney, Raymond Large.

In an effort to collect taxes on vehicles used for short-term leases and in rental businesses, board members approved an ordinance to levy a 1.5 percent tax on gross receipts. The decision to collect these taxes followed a move by the General Assembly to stop collecting the funds. "The act repealed the property tax on certain vehicles leased or rented under retail short-term leases or rentals and authorized counties to replace the lost tax revenues through enactment of a local tax," said Fox.

The next meeting of the board of commissioners will be held at 7 p.m. Thursday, July 6, at the Justice Center.

Back to Archive: 06/29/00.