Washington County Commissioner James Booth, second from left, expressed disagreement with creating a community development fund with $1.5 million into the fund for the Southeastern Ohio Port Authority to use to purchase the former AMP Gorsuch site. (Photo by Michelle Dillon)
The Southeastern Ohio Port Authority is one step closer to purchasing the former AMP-Gorsuch.
During a Washington County Commission meeting Thursday morning, commissioners approved creating a community development fund and putting $1.5 million in the fund at the start to be used by the Southeastern Ohio Port Authority (SeOPA) to purchase the former AMPGorsuch site.
The effort to buy the property has seen several stumbling blocks.
The commissioners first discussed helping SeOPA purchase the AMP Gorsuch site in some way during a March 28 commission meeting which they approved with a 2-1 vote, with Commissioner James Booth dissenting, allocating $1.5 million for community development and accepting the general idea of a proposal from SeOPA to borrow the $1.5 million to buy the site. Then at a May 30 commission meeting commissioners voted 2-1, with Commissioner Charlie Schilling dissenting, to allow 28 days for a private entity to enter an agreement to purchase the site, which was was followed by a June 27 2-1 vote, with Schilling dissenting, to table the proposal for further discussion in light of concerns that had been expressed by Booth.
Those concerns included SeOPA having an insurance policy that indemnifies the county from any liability at the site; wanting SeOPA to set aside funds to cover any potential default, spending the $1.5 million on other needed projects, and more.
The June 27 meeting was the last time the SeOPA loan proposal was discussed at a commission meeting until Thursday when Schilling made a motion to approve creating the community development fund and Commissioner Kevin Ritter seconded the motion.
“I feel like it’s a way for us to be more impactful with our investment income,” Schilling said about the fund and that he feels like the fund can be used to provide matching money when the county applies for grants.
Schilling read a statement in support of creating the fund into the records and in it he said from 2021 through May 2024, County Treasurer Tammy Bates has made the county $4.7 million in investment income.
“The added revenue our investments have created is the sole reason I felt it was important to support SeOPA in purchasing the AMP Gorsuch site,” Schilling said.
“This partnership and purchase provides an avenue for Washington County to attract business and industry which brings back much needed jobs.”
The former AMP Gorsuch Site, which is located on State Route 7 across from Eramet, has been described by SeOPA as the only opportunity for the county to marry rail and the river and the agency plans to connect Muskingum River Industrial Park to the river and combine 455 miles of Ohio River frontage with 50 miles of rail to restore lost jobs, revenues and taxes to the area and to open it up to the world market.
Ritter spoke next. He said the county expects to receive roughly $2 million in investment income in 2024 and the fund would be subject to the same rules and protections as money in the general fund.
“In other words, it would take two commissioners to approve any appropriation, to approve any spending out of that line item,” Ritter said. “In other words, it can be clawed back if needed.”
He also pointed out that the money they are talking about putting in the community development fund is investment income, not tax revenues and he mentioned a deal in the works to help SeOPA purchase the site that is not the original loan proposal.
“The deal that the treasurer is talking about making with the (SeOPA) would be at 6% (interest),” Ritter said. “It would be even a higher rate of revenue for the county and we would be investing those dollars locally.”
Booth responded to the statements of support with questions and concerns he has about the fund and SeOPA and he read a statement against the resolution into the record.
He said he is for expanding infrastructure and then asked what amount would go into the fund to start it and Schilling answered $1.5 million would be used to start the fund.
Booth expressed concern about who would be able to apply to use the money in the fund.
Schilling responded that who can get the money is a discussion for the future and reiterated that the money in the fund can be used in the future to make the country more competitive when applying for grants.
“I believe our first duty is to maintain the county,” Booth said. “We have done a lot of projects with a lot of success, but are we trying to be too big too quick. Sometimes you can outspend in my opinion by doing so.”
Booth asked if SeOPA is still in negotiations with the county treasurer to obtain a bond to purchase AMP-Gorsuch and SeOPA Executive Director Jess Roush confirmed they are.
“So the $1.5 million set in this fund and $1.5 million on a bond to purchase the AMP site, is this a potential $3 million to (SeOPA)? Booth asked. “Could this happen?”
“No I don’t believe it could,” Schilling responded. “Simply put, the $1.5 million, that I’m going to make a motion here in just a moment to move over into that line item, is going to be for that bond in particular for the purchase. So it’s $1.5 million at the maximum right now, okay.”
Ritter said he supports establishing the fund, but he does not support the AMP Gorsuch site “becoming a black hole for county funds.”
He said he is not interested in going above and beyond the $1.5 million and Schilling stated they are appropriating the $1.5 million as seed money for developing the site and that’s as far as he wants to go.
Booth said he is not in support of $1.5 million being transferred into the fund and asked hat the money not be transferred until more discussion could be had about the issue and made a motion to table the creation of the fund.
Ritter and Schilling voted no to tabling the fund, with Booth being the only yes vote.
Then they held a vote on approving the creation of the fund, which also passed 2-1 with Booth voting not and then approved by a 2 to 1 vote, with Booth dissenting, moving $1.5 million into the fund.
After the meeting Schilling confirmed that SeOPA receiving the $1.5 million in the community development fund has been approved.
Ritter asked if the original loan proposal needed to be voted on in light of the creation of the community development fund and the commissioners decided to keep the original loan proposal tabled until they can discuss with the county prosecutor how to properly handle it.
Roush said after the meeting he is “relieved” that the fund was created and he pointed out that SeOPA will be paying the $1.5 million back because it is a bond and the county will make several hundred thousand dollars of interest on the bond.
He said SeOPA has not signed the bond paperwork yet and SeOPA originally planned to buy the site at the end of September and they still think they can do that.
