ECONOMIC DEVELOPMENT AUTHORITY
Thursday, September 4, 2008

Present: Mr. Greg Kelly, Mr. Bennett Saunders, Mr. Erwin Berry, Ms. Emily
Pelton,
Mr. Natt Hall, Mr. Alphonso Taylor and Mr. Steve Crandall (Staff: Ms.
Maureen Corum)

COURTHOUSE PROJECT – Mr. Steve Carter reviewed the planned renovation of the
courthouse and certain buildings on the campus. He also reported on the
planned new buildings to house court facilities and the central entrance for
the complex. Mr. Carter then presented the Davenport & Company financial
analysis and proposed alternatives as presented to the Board of Supervisors
in September. Mr. Carter reported that Davenport has recommended financing
of the project through Rural Development loan funding for a 40-year term
with an accelerated payback in 19 years (2027). He noted that the EDA would
issue the required Lease Revenue Bonds and asked for the EDA’s agreement to
help with the completion of the project.

Mr. Crandall asked whether the bid package could include something to give
preference to local masons, contractors, etc. He asked whether the county
could require that a certain percentage be local contractors. He said that
he would hate to see all of the money going out of the county. Mr. Carter
said that, typically, the county uses a general contractor who then
subcontracts. Mr. Hall then questioned whether the EDA would charge the
county an originating fee, limited to 1/8th of a percent by law. He
explained to the new members that the EDA has submitted a budget to the
county each year for $8,000-$10,000 which has not been funded. Mr. Hall
said that the EDA has to find ways to generate funds for EDA projects. Mr.
Crandall said that the EDA needs to discuss whether to charge the county a
fee but that he would really like to see the county find a way to use a
percentage of local people on the project. Mr. Carter said that the
Supervisors would prefer that there were not a charge but that it would not
stop the project. He said that he would talk with Wiley Wilson about using
local people again but had found in the past that it often added 4-5 times
the cost. Mr. Crandall agreed that using locals should not be excessively
more expensive but if the cost were on par, locals should be used. He
suggested that the county could require the contractor to solicit local
bids. Further discussion on charging a fee was tabled until the October
meeting. Members agreed by consensus to support the project.

TREASURER’S REPORT – Mr. Taylor read the report from August 2008 as
submitted by the previous Treasurer (Mr. Armstrong) noting:

– LGIP Account $8,592.27
– BB&T CD $136,611.50
– BB&T Checking Account $14,290.61

Total funds available on account $159,494.38

OLD BUSINESS – None

CLOSED SESSION – Members met in Closed Session to discuss a business
prospect not yet announced.

Meeting adjourned.

Copyright 2000-2008 by Rural Nelson, Inc. All rights reserved. Reports may
be reprinted or excerpted with attribution.