Thursday, January 19, 2017

Intermodal Board Debates Debts and Insurance

The Southeast Arkansas Intermodal Authority Board met for it's January, 2017 meeting January 18th in the conference room of the Bradley County Economic Development Commission office.  The board reviewed the monthly financial report and approved the bills owed.

According to the report, the cities of Warren and Monticello and the counties of Drew and Bradley owe the authority a total of $607,542.49.  The total is broken down as follows:
Drew County-$158,295.95
Bradley County-$228,192.50

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During the discussion the board was told that bills had been sent to the four governmental entities and that Drew County has responded that they do not owe the money but will pay $40,000.00 as budgeted by the county if a bill in that amount is sent.  This led to a general discussion about whether or not the $607,542.49 is a legal obligation of the four governments.  There was talk about whether or not  any agreements exists that requires payment by the four entities.  According to statements made during the meeting, no agreements exist.

A discussion ensued concerning plans for  board members to attend the quorum court  and city council meetings of the four governments in February to update the bodies on the status of the intermodal park and to discuss the $607,542.49 and other pending expenses.

The board was told that the issue of reaching an agreement with the railroad concerning a crossing of the tracks on the intermodal site is continuing.  There are legal matters and decisions relating to fees to be worked out.

Bids were opened for insurance on the water tank that is located in the park.  The low bid was $9100.00.  The board then discussed whether or not to pay the bill by borrowing the money or to ask the cities and counties to pay.  The board voted to pay the bill.

Another discussion took place about the possible need to buy general liability insurance and errors and omissions insurance to cover the board members.  Further research will be conducted to try to determine if the authority has tort immunity due to being a creation of the cities and counties.

The board was informed that a major industrial prospect that was looking at the intermodal site has chosen a location in another state.  Efforts will continue to seek tenants for the park.  

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