During a meeting that lasted a little over one hour, the Southeast Arkansas Intermodal Authority had a detailed discussion of how the Authority will pay off an estimated $600,000.00 to $700,000.00 loan that will be owed once all state and federal grants are expended. It was obvious from the discussion that the cities of Warren and Monticello and the counties of Bradley and Drew are being counted on to pay off the loan. According to the ordinances adopted by each creating entity, there is no obligation of funding required by the cities and counties unless so appropriated by the individual governing bodies. It has been reported that the cities of Warren and Monticello and Drew County have budgeted money for payment during the fiscal year 2015 and all plan to contribute as budgeted. Bradley County has budgeted no money for 2015. There is no where near the amount estimated to be owed currently agreed to by the four local governments. The full note is due in early November, 2015.
The Authority's financial report listed the following as being owed by each entity as of October, 2015:
Monticello-$72,540.37
Warren-$103,887.91
Drew Co.-$160,983.14
Bradley Co.-$190'883.67
The board was told a bill was going to each entity requesting payment.
While the authority is a creation of the two cities and counties, it is an independent public authority and is governed by a 12 member board. The loan was secured by the authority and is legally owed by the organization. Over the years the authority has existed, the two cities and two counties have contributed substantial dollars to the purchase and development of the Authority's intermodal site and have from time to time approved contributing local tax dollars. Grants have been utilized to pay for construction projects on the site and each required matching funds from the Intermodal Authority. The Authority members discussed working out a new loan agreement allowing the cities and counties an extended time period to pay off the loan and interest. It was unclear if the authority is asking the local governments to assume the loan or pay the money to the Intermodal Authority to pay off the loan. In any case the city councils and quorum courts would have to approve the expenditures. When asked if the cities and counties could come up with $100,000.00 or some similar amount each, in the coming year, Drew County Judge Akin quickly responded, "no."
In other business, Garver Engineers told the board members that the contract for the railroad crossing is not finished and the engineer has been told the cost will exceed the authorized change order by around $14,000.00. Garver and the railroad company are discussing the matter. The authority would have to come up with the total $14,000.00.
Attending the meeting were staff members of Senator Boozman, Senator Cotton and Congressman Westerman. They were asked if any additional federal grant money might be sought to help pay on the construction work. All stated the changes are very slim if not nonexistent. Nita McDaniels, executive director of the Monticello Economic Development
Commission and a board member of the Intermodal Authority, voiced her frustration with the continual changes in the advice issued by the Arkansas Economic Development Commission to local communities as to how they should work toward industrial recruitment. She said every new administration alters the recommendations they give to the local communities. There was an intense discussion with the AEDC representative attending the meeting.
The Authority's financial report listed the following as being owed by each entity as of October, 2015:
Monticello-$72,540.37
Warren-$103,887.91
Drew Co.-$160,983.14
Bradley Co.-$190'883.67
The board was told a bill was going to each entity requesting payment.
While the authority is a creation of the two cities and counties, it is an independent public authority and is governed by a 12 member board. The loan was secured by the authority and is legally owed by the organization. Over the years the authority has existed, the two cities and two counties have contributed substantial dollars to the purchase and development of the Authority's intermodal site and have from time to time approved contributing local tax dollars. Grants have been utilized to pay for construction projects on the site and each required matching funds from the Intermodal Authority. The Authority members discussed working out a new loan agreement allowing the cities and counties an extended time period to pay off the loan and interest. It was unclear if the authority is asking the local governments to assume the loan or pay the money to the Intermodal Authority to pay off the loan. In any case the city councils and quorum courts would have to approve the expenditures. When asked if the cities and counties could come up with $100,000.00 or some similar amount each, in the coming year, Drew County Judge Akin quickly responded, "no."
In other business, Garver Engineers told the board members that the contract for the railroad crossing is not finished and the engineer has been told the cost will exceed the authorized change order by around $14,000.00. Garver and the railroad company are discussing the matter. The authority would have to come up with the total $14,000.00.
Attending the meeting were staff members of Senator Boozman, Senator Cotton and Congressman Westerman. They were asked if any additional federal grant money might be sought to help pay on the construction work. All stated the changes are very slim if not nonexistent. Nita McDaniels, executive director of the Monticello Economic Development
Commission and a board member of the Intermodal Authority, voiced her frustration with the continual changes in the advice issued by the Arkansas Economic Development Commission to local communities as to how they should work toward industrial recruitment. She said every new administration alters the recommendations they give to the local communities. There was an intense discussion with the AEDC representative attending the meeting.
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