County Commission Told to Repay Debt

In the Sept. 23 Gulf County Commission meeting, the commissioners received a wake-up call about a delinquent debt, then a sweetheart deal for repaying that debt.

Janice Watson, a member of the Apalachee Planning Council (APC), along with an attorney for the Council, reviewed the history of a $365,000 23-year old debt that Gulf County owes APC.

In 1985 the APC, using a grant from the U.S. Economic Development Administration (EDA), loaned $1,365,000 to Gulf County to help Raffields Fisheries purchase a giant commercial freezer and build their new plant on the Gulf County Canal.

The idea, according to APC, was to use the loan to the county to start and perpetuate a revolving loan fund to help people in the APC nine-county area, using the payments from the county and Raffields as funds.

Several attempts at collection and litigation ensued over the next 10 years, according to the APC lawyer. When a massive fire hit Raffields in 1995, the county commission paid $1 million of the debt back to APC from the insurance money.

The APC reduced the remaining debt to $365,000 and entered into an agreement with Gulf County in which the county would collect rent from Raffields under an escalating lease payment for five years.

At that time Raffields could purchase the giant freezer (which was the subject of the original debt) for whatever remained of the $365,000. The freezer was to be deeded to the county, who would then lease it to Raffields.

Because Gulf County was in severe economic straits in the late 1990s, Warren Yeager, then county commission chair, asked APC in 1999 for an extension of the promissory note of the remaining $365,000.

According to the attorney for APC, Raffields rent was never raised in accordance with the escalating lease payment, and of the $3,800 per month payment, $1,000 was retained by the county and $1,000 sent to APC, per the agreement.

In 2007 APC met with county officials about the debt after EDA began voicing intentions to collect the debt itself. According to APC counsel, they heard nothing back from Gulf County so came to the commission meeting to settle the issue.

In the meeting APC offered Gulf County a deal in which the county would pay APC the $200,000 it has in the budget for new businesses.

In exchange, APC would establish a third revolving loan fund just for borrowers in Gulf County.

As payments on the debt come in from Raffields, the money would go to the reduction of the debt until it was paid in full.

Then the funds would continue to go into the newly established loan fund for Gulf County, enabling other businesses in the county to borrow funds.

"We know there are people in Gulf County who have tried to get loans through commercial lenders," the APC attorney told the board. "This is what we [APC] do and we want to help others. But we need to have something because we can't sit here and do nothing."

"This money would be for the good borrower who's just under the commercial lender's threshold," Watson told commissioners.

According to Traylor, "This is about the fairest thing I've heard. With this debt out there, we are not able to do anything for other businesses [in the county]."

Butler and McFarland were appointed by the board to represent the county in negotiating with APC.

The board voted 4-0 (Commissioner Jerry Barnes abstaining) to allow Butler and McFarland to discuss the details and finalize the deal with APC.

Afterwards, Watson complimented and thanked the commissioners on their letter of sympathy sent to her last year at the death of her son.

She said that Gulf County was the only county entity out of the nine-county region served by the APC who sent her such an acknowledgement.

"If you could take the time from your busy schedule to do this, there is hope," Watson told the board." It says more for you than anything else."

In other business conducted at the meeting:

- Commissioners discussed the issue of the county accepting private roads into county jurisdiction. A proposed development in Howard Creek prompted the discussion, since the development's roads would be in a zone prone to flooding. The board tabled the issue for future discussion.

- The board voted 4-1 (Commissioner Bill Williams dissenting) to prohibit Gulf County Sheriff Joe Nugent from rolling over into the 2008-09 budget approximately $20,000 left in his current budget. The 2008-09 budget begins Oct. 1.

Commissioner Nathan Peters said since the board had given the Sheriff's Office $50,000 last year, the $20,000 should be returned to the general fund.

Commissioners Carmen McLemore and commission chair Billy Traylor agreed, saying other county departments had returned money many times.

Williams disagreed, saying the board was punishing Nugent for being a good steward of county money.

- The board approved 5-0 a three-year contract with a private company to continue a pre-trial release program in the county.

The program was requested by Judges Elijah Smiley and Fred Witten last year. The program, according to the board, saves jail costs for the county, and allows people who cannot make bail to be released before their trial date under certain conditions and supervision by the company running the program.

- The county voted unanimously to enter into an interlocal agreement with both Wewahitchka and Port St. Joe for animal control.

Roland Jones, currently the county's only Animal Control officer, estimated that approximately 40 percent of his calls for dogs come from the two cities.

- Williams' Oct. 13 Beaches town hall meeting has been changed to Oct. 20.

- The Highland View Park dedication has been set for 5 p.m. ET, Oct. 9

At a special meeting Sept. 29, commissioners continued their discussion of accepting any more private roads into county jurisdiction. The current ordinance, passed in 2002, states that after 12 months the county can accept private roads upon request and then maintains the roads at county expense.

The board directed McFarland to change the existing ordinance and bring it back for their approval, stating that the county would not accept any more private roads and would not assume responsibility for any more private roads. They based the decision on the current economic climate and declining county manpower.

At the final budget following the special meeting, the county officially accepted the 2008-09 proposed county budget and millage rate. The millage rate will be 4.8949, down from last year's 5.3380 rate. The vote was unanimous.