Published: May 18, 2007 11:53 am      

Development Authority members briefed on financial assets, liabilities

PETERSBURG - The Grant County Development Authority got a rundown of its financial assets and liabilities for the fiscal year ending June 30 during a briefing held at its recent business meeting.

Starting with the special projects account, Alicia Reel said it is the operating account for the authority and its funds are unrestricted.

"Revenue for this account consists of monthly rent payments from Allegheny Dimension of $2,200," she said.

The account also reflects $250,000 receivable from the airport authority for a grant received by the development authority from the Small Business Administration and lent to the airport.

Member Jim Cookman said that the loan was for the construction of the new terminal building to replace the one flooded out in 1985.

There was some question among the members whether it was to be a pass-through grant or a loan.

Reel said that a deed of trust was executed in 1996 in the amount of $250,000 to be repaid by the airport authority on or before the end of 20 years.

She said, however, that the airport authority does not have the funds to pay it and isn't likely to have them in the future.

Moving on to the other accounts, Reel said that the community development grant account was opened to track operating expenditures paid with the state grant funds. Those funds are considered restricted and the monies deposited are $34,000 from the state, which is matched with $34,000 from the county.

"This is the account which pays the director's salary," she said, and it has more than $106,000 in it.

Authority Chairman John Harper said that in order to continue to receive these funds, the county must recertify each year, and that requires 30 hours of training by the director or someone on the authority.

County Administrator Cindy Whetsell said the training must be documented by the end of June.

The industrial park and building grant account was established to handle the federal Economic Development Authority grant funding, which paid the construction costs related to the Mountain Top Industrial Park and the county multitenant building.

"These funds are restricted for uses related to the construction projects," Reel said. "All grant monies have been received and expended."

The account is now used to show repayment of the authority's loan with the West Virginia EDA for the multitenant building in the amount of $291,232 and the industrial park in the amount of $124,000.

The revenue for the account is $4,000 per month paid by Grant County Memorial Hospital for the lease of the multitenant building.

This money is used to pay on the loans, currently $1,500 a month on the industrial park and $2,300 on the multitenant building, which is to increase to $3,000 in 2012. Reel said they are paid ahead on the payments through October 2007.

Other accounts she reviewed include the farmers market account, which was opened in conjunction with an agreement between the Lightstone Foundation and the development authority in 1999.

"There are no farmers markets," said Whetsell.

Harper suggested that the authority should return the $1,200 in the account to Lightstone.

The Morgantown Road water project account was established to receive and disburse state monies for infrastructure for the Allegheny Wood Products facility that is expanding to the Patterson Creek Road area.

The industrial development fund was established for operating capital for the new American Homes by United Builders facility. The account has $50,000 of $200,000 remaining.

The last account was established for the purpose of interim financing to develop the industrial park area known as the Borrow Site. This account is a credit line of $400,000, of which $109,000 has been drawn and is owed.

Renewal of the line of credit is due Tuesday. With approval of the authority members, the matter is to be expedited.

Before going into executive session to discuss two candidates who were interviewed for authority director, the members approved $7,500 for remodeling of a building near the courthouse where the authority offices are to be located.

The director's position became vacant with the retirement of Elwood Williams in January. The authority is expected to make the announcement of the new director at the next meeting.

Mona Ridder can be reached at mridder@times-news.com.