JDA WANTS COUNTIES TO SIGN “TAX PLEDGE” TO KEEP THEM AFLOAT AND PAY THEIR NOTES–

RESOLUTION ON JASPER COUNTY BOC AGENDA FOR MONDAY NIGHT, 1/11/16

January 9, 2016

Sign Agreement

Note:
 JDA=Joint Development Authority or 4 County Development Authority or Stanton Springs

TPA= Technology Park/Atlanta or TPA Group

Jasper County’s part of all this is 10%

The Jasper County BOC has been presented with a resolution to pledge any tax revenue they are to receive from the Baxter (now Baxalta) plant from 2018 forward, until the Bank of Madison note is paid off.  The note payments, however, start in 2016 at $136,000 annually to pay off a $1.35M note. 

THIS RESOLUTION NEEDS TO BE TABLED UNTIL ALL QUESTIONS ARE ANSWERED AND FUTURE PLANS ARE REVEALED.

See copy of resolution here.

Starting on page 2 of this resolution you will see the details:

  1. TPA will not be buying any land
  2. JDA owes Bank of Madison approximately $1.35M
  3. JDA must make payments of $136,000 annually starting in 2016 with a balloon note of almost $700,000 (more than 1/2 the note) in 2025.
  4. JDA will also borrow up to another $600,000 with the Bank of Madison on a Line of Credit from 2016 to 2019. (Based on what Alan Verner and Wayne Tamplin told the Morgan County BOC, this would be to “operate on” for the next 3 years.)
  5. Each county pledges their portion of the tax revenues from Baxter to pay off the loan and LOC.

We do not know who wrote this resolution or when it was decided upon by any Board of Commissioners or the JDA that such a resolution would be written.  There has not been a meeting where this was voted on But there were a good many Newton County cars out in front of Tommy Craig’s office this past Thursday (1/7/16) around 4PM, and there were 2 Morgan County vehicles and at least 1 Jasper County vehicle there.  After what appeared to be a meeting at Craig’s office, the Newton County BOC added “Appointments to the JDA” to their agenda at that night’s meeting.  And voila! Newton County has 2 new representatives to the JDA and there’s a new Tax Pledge Resolution.  Of course, this is all speculation because we were all told that Tommy Craig had resigned from JDA. 

Wayne Tamplin told the Morgan County BOC that the Bank of Madison has first lien on the property, so “we need to keep them satisfied”

Wayne Tamplin does the accounting work for JDA and sits on the Board of Directors for the Bank of Madison.  Just a little conflict of interest?

Also starting 2018, JDA must pay back a $6M plus GEFA loan at $22,000+ per month, and the tax revenues from Baxalta have already been pledged toward this note.

Mr. Tamplin also explained to the Morgan County BOC how the tax payments would come in from Baxter, with $198,000 received in 2018 and going up each year after that.

This tax revenue has to retire all the debt JDA has incurred, so all the promised revenue to the counties is going to pay JDA debt because “their partner”, TPA, has declined to buy any more property.  Tamplin also says the LOC will be paid off in 2022; however, the “Tax Pledge Resolution” does not address how the LOC will be paid.

The resolution also doesn’t address how long the tax payments will be diverted to JDA, what the interest rate is, what bank fees will be incurred, and if JDA will be allowed to continue to go into more debt, you know, for another $5M parkway or something like that.

Neither Morgan nor Newton Counties have seen this resolution, much less voted on it. (Maybe Walton County too, but TWG hasn’t contacted anyone in Walton.) There needs to be (as previously suggested by Newton County BOC) a meeting of all 4 counties and the JDA members to discuss what is going on and what the future plans are so the taxpayers are not getting continually soaked for more and more taxes, BEFORE any resolution is signed.

We urge YOU as citizens to call your county commissioners and ask them to table this resolution.    Better yet, come to the meeting that starts at 6:00PM on Monday, January 11, and ask them to table this. 

 

TWG

Citizens, be informed and stay informed!  Only by being informed can the citizens understand what is being done and talked about, and then press our officials to make good decisions for everyone in Jasper County.  That is our goal with the Taxdogs blog.

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3 Responses to JDA WANTS COUNTIES TO SIGN “TAX PLEDGE” TO KEEP THEM AFLOAT AND PAY THEIR NOTES–

  1. J. Ross Hays says:

    I can understand if we were to pledge to pay 10%. We are to receive 10% of the profit and, I believe, we should be willing to pay 10% of the costs. However, it is completely unreasonable to expect us to pay 100% of our “income” from this project back to JDA. Why would anyone do that? WE, Jasper County, do not owe them 100%. We shouldn’t be on the hook for the 10%; but, I can see how that would be within reason.

  2. What a cluster says:

    JDA – The gift that keeps on giving.

    TPA will no longer be buying land from JDA. I assume that TPA will sell the land they already own and then bow out. Will JDA align themselves with a commercial real estate company actively marketing the land at Stanton Springs?

    Just wait a few years down the road when they start building homes and golf courses etc. With the great negotiation skills JDA has, the taxpayers will be paying for maintenance of the golf courses, the roads, and recreation areas.

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