Before a validation hearing could be held to legalize a proposed Improvement District on 82 acres at the intersection of Hwy. 46 and I-20 the developer plans to add an additional 26 acres and wants to increase a county/city tax commitment by an additional $1 million or more.
Developer David Hewitt came before a meeting of the Economic & Industrial Development Authority of Cleburne County Tuesday night proposing to add 26 additional acres which he is ready to exercise an option on with Georgia Kraft paper company to his proposed project, bringing the total to 108 acres.
Both Cleburne County and the City of Heflin have been working on funding agreements amounting to about $8.5 million with Hewitt whereas he would obtain bonds to develop infrastructure within the Improvement District and county/city sales taxes collected there would go to pay the bonds off over a 25 year period.
Hewitt told the EIDACC that adding the additional acres along with building a road for truck traffic across his property to the edge of the county/city industrial park would bring financing up from $8.5 million to around $10 million.
Most of the EIDACC board members present were in agreement with Hewitt’s proposals as a solution to access to the industrial park. The only access now is via Riley/Hale roads but EIDACC attorney Russell Emrick said an entrance there would involve cutting down Hwy 46 due to Alabama Department of Transportation safety and line-of-sight requirements. EIDACC member Steve Swafford said he never thought that proposed entrance was an option. Entrance problems and having to cross Colonial Pipeline’s pipes were mentioned as factors against the route.
The EIDACC then began considering another route to the park across Hewitt’s development and touching on property owned by two private landowners. The board asked Emrick to contact the property owners to discuss easements after a review of past paperwork revealed that the board never had easements they thought they had.
At the same time the board realized the route to the park would depend on what Hewitt has planned for his development because they must cross his property
“David is relocating our access road into the park,” said Emrick as Hewitt prepared to discuss his plans Tuesday night. Hewitt said his intentions are to locate his road southward along I-20 and going through the Georgia Kraft property to the property line of the industrial park on the southside rather than the northside of his property as EIDACC board members had originally assumed.
By building and paying for the road himself, Hewitt would be saving the XXXXX board, he said, anywhere from $820,000 to $1,227,000. “That is a heck of big impact on funds we don’t have to come up with,” said XXXXXX.Hewitt said he “hopes people will have a level head and see the upside to this.” Emrick added, “Us and Mr. Hewitt are going to have to tie something down.” “It’s money we don’t have to pay,” commented XXXX member Lance Turner.
XXXXXXX Chairperson Sherri Morgan said the board would probably spend more if they obtained easements and built a road connecting the northern end of the park property to Hwy. 46.XXXXXX
Hewitt told the board he would work with them anyway he could to get something going and if the city and county do not go along with his latest proposals and the XXXXXX needs easements across his property he will be glad to give them free as long as they build a road to his specifications. “Dwelling in the past is getting us nowhere,” Hewitt added.
XXXXX member xXXX made a motion that the board request the city and county take the additional property into the district. The motion passed and a decision was made to write letters to the Cleburne County Commission and to the City of Heflin requesting they approve the plan. The XXXXX also discussed several members attending the upcoming commission and council meetings next week.
Acceptance of the added property would need to be okayed by the Heflin council and both the city and county commission would have to accept a new funding agreement.
Swafford said that for the past few days the county attorney and county bond attorney have been trying to work out a funding agreement which XXXXXXXXX.
xXXXXX said he thought the term “funding agreement” was not exactly correct and Hewitt agreed, saying there has been a lot of negativity toward the term.
Swafford responded by saying there is a “tax obligation toward the city and county” XXXXXXXXXXX but Hewitt stated the “city and county has no obligation to collect taxes” in the district and all the risks are on him until the now projected $10 million debt (on the bonds) is paid off within a 25-year period.
Hewitt said he believed it is the intent of everyone to “get some jobs generated” however he did not reveal any plans concerning possible Improvement District businesses such as hotels, restaurants, etc.
In other matters the XXXXX voted to seek an outside auditor to conduct a financial audit of the board’s financials. “I think we ought to get on with that to make everyone feel better,” added XXXXXX. The board also voted to have Emrick get their by-laws in order.
