ROGERSVILLE — In February, Hawkins County will begin paying the principal on a $700,000 loan that helped pay for an industrial “spec building” that county leaders hope will eventually pay off with the creation of additional jobs and tax revenue.
The Hawkins County Commission voted 19-1 on Monday to begin making monthly payments for a shell industrial building that was completed at the Phipps Bend Industrial Park earlier this year.
The building cost $1.3 million to construct, but a grant covered $600,000 of the cost.
For the past two years since the project was launched, the Hawkins County Industrial Development Board has been paying 2.67 percent interest on its $700,000 loan for the spec building.
IDB Chairman Larry Elkins explained to the County Commission on Monday that new banking regulations required that when the loan matures in January the guarantor of the loan, Hawkins County, make monthly payments toward the loan principal.
When the facility sells, Hawkins County’s payments will be recouped from the sale price, Elkins noted.
During discussion of the loan payment Monday, Commissioner Jeff Barrett asked about the ongoing problem with a leaking roof at the spec building, as well as what benefit that building will be to county taxpayers.
Hawkins County Industrial Developer Lynn Lawson said that although there has been a problem with leaking, the contractor is working on the problem and he expects it to be solved by January.
As for the benefit to taxpayers, Elkins said potential new industries are more easily lured into a county when there is a shell building already in place.
“You’ve got to have something to sell,” Elkins said. “If you’re selling used cars you’ve got to have a few cars out there for them to look at, and this is already proving to be a winner. We’ve got a Chinese company that’s been coming in here looking at this building. They’ve just not made a decision. Sometimes it takes, eight, 12, 15 months for a company to make a decision.”
Elkins noted that when the IDB made the decision to build the spec building it thought the recession that started in 2008 was coming to an end.
“We’re not seeing a lot of activity in a lot of areas,” Elkins added. “But this morning I spent about two hours with one of our local industries talking about a $50 million investment and 200 new jobs they’re doing up at the AGC. There is some activity, and we’ve got to provide jobs for our young people as they come out of school, and this is the best way I know how to do it.”
The only no vote was cast by Commissioner Danny Alvis.
In other business Monday the commission:
•Approved reappointments to the Industrial Board for six-year terms including Tony Burchfield, Terry Glass, Danny Cochreham, Tommy Young, and Larry Elkins.
•Tabled a proposal establishing procedures for county department heads to purchase items placed up for public auction. There was a question regarding procedures for bidding for online auctions such as “GovDeals” and the policy was tabled for one month to allow County Attorney Jim Phillips time to do some research.
•Heard a report from Commissioner B.D. Cradic who said a resolution giving permission to hang historical documents, including the Ten Commandments, at the Justice Center will be introduced next month. Cradic and Commissioner Fred Castle originally introduced the resolution last month but withdrew it to allow time for the proposal to be rewritten and clarified.
Cradic said an attorney from Nashville suggested the proposal be put off until January while other issues surrounding the controversial subject are clarified.