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Commissioners seek to reduce county's debt on Leesburg Industrial Park

Lead Summary
By
Rory Ryan-hcpress@cinci.rr.com

A proposal that could save Highland County more than a quarter of a million dollars was introduced Wednesday by Highland County Commissioner Shane Wilkin.

Wilkin met recently in Columbus with the Ohio Development Services Agency regarding the county's outstanding debt related to bonds on the Leesburg Industrial Park.

Wilkin explained that "Debt has been a lingering problem for us. A lot of our debt is tied to bonds. Re-issuing bonds drags the debt out even longer."

More than half a million dollars of the county's current debt is in the Leesburg Industrial Park.

Wilkin said he asked the Development Services Agency, "What if I could get a reduction on the Leesburg Industrial Park (by) making a lump-sum payment?"

The county has not been making payments on the debt for years.

"Not since I've been here," Commissioner Tom Horst said.

Wilkin said the county may have made one payment in recent years.

Currently, the county has an obligation to the state of approximately $544,000 or more on the industrial park.

"We talked, and I think they'll be sending us an offer of 45 cents on the dollar," Wilkin said. "Once that gets here, we'll either say 'yea' or 'nay' on it."

If the state follows through with the offer, the $544,000 debt (not including a 2012 payment of $90,000), could be reduced to approximately $244,800.

When asked if that payment fit into the county's 2013 budget, Highland County Auditor Bill Fawley, who attended the March 13 meeting, said, "I think we'll be able to scrounge for it (the quarter-million-dollar payment)."

Fawley explained that when the county and state entered into the Leesburg Industrial Park agreement "in the early 2000s," the county's sale of additional lots was supposed to pay the loan.

With the economy in recession, that didn't happen.

The county has been receiving approximately $15,000 a year for cropland leasing. That money, Fawley said, has been set aside in a debt line item in the budget, and totals approximately $100,000, which could be applied to the $244,800 lump-sum payment.

"It makes it (the industrial park) more flexible for us once we get the state paid off," Horst said. "We are much more in control of the ground itself."

Fawley credited Wilkin for negotiating the one-time payment with the Ohio Development Services Agency.

"Shane worked hard to get this proposal," Fawley said. "It's a smart move for the county."

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In other business:

• Commissioner Wilkin provided a brief update on a March 8 meeting regarding the recent announcement that RR Donnelley (formerly Banta Publications) of Greenfield informed its employees last week that the company would be closing its Greenfield facility in 60 days.

The layoffs will affect 166 employees and their families.

This week, RR Donnelley announced that it will also close a Cincinnati facility. Approximately 57 employees will be affected by that facility's closure. (See http://www.highlandcountypress.com/main.asp?SectionID=2&SubsectionID=20…)

Wilkin talked about labor transitions and the process for employees and employers to consult with One Stop Manager Rick Thompson (at the Highland County Employment Center, 1575 N. High St. in Hillsboro).

Wilkin stressed to local businesses that if "you are looking to hire a displaced worker, send them to the One Stop first (for any potential government benefits). Once they've accepted the job, you're out of luck. You cannot go backward. Go to the One Stop first."

Horst added that "When you look at the unemployment numbers, Highland County is at 11.5 percent and that does not take into consideration RR Donnelley's layoffs."

* * *

• Commissioners also met with Lee Conkel of L-Con Engineers LLC and Sinking Spring Mayor Clarence Zile regarding the proposed Sinking Spring sewerage system.

Commissioners were asked to support the proposed $1.3 million wastewater treatment plant project by endorsing a Community Development Block Grant (CDBG).

"The project is an EPA-mandated project," Conkel said. "The village does not have a current wastewater treatment plant. The county would have to apply on behalf of the village of Sinking Spring."

"We're not looking for any extra work as far as the maintenance and operation," Wilkin said. "Are you just looking for grant assistance?"

Conkel replied that the county would not be operating or maintaining the system, and that Sinking Spring just needed assistance for the grant.

"The money would go to the village CDBG water and sewer grant," Conkel said. "We either get the grant money, or it won't happen."

"We have the land bought and paid for," Sinking Spring Mayor Clarence Zile said. "(New) businesses have temporary approval for the systems they're using."

"I have no problem as long as we're not on the hook for any payments," Wilkin said.

The village indicated it would pursue the grant opportunities in conjunction with L-Con Engineers LLC.

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