SECRET DEALS ALWAYS BENEFIT SOMEBODY—WHO THIS TIME?

February 14, 2019

Who is going to benefit from the County’s $825,000 purchase of the bankrupt “hospice” building on Eatonton St.?  Certainly not the taxpayers who will now incur over $1,000,000 in new payments over the next 15 years.

ACTUAL COST OF BUILDING:

$825,000 + $258,838 INTEREST = $1,063,838 +
renovation costs + annual insurance + maintenance + ??? = ???

After weeks of trying to get documents from the Jasper County Commissioners concerning their secret new deal through open records, a summary sheet was finally produced. The January minutes said these documents were attached, but either they were not attached or they have been held to avoid public knowledge of the “deal.”

Here is how the deal is structured, and no one can or will tell us why the Development Authority is involved.  (That’s another secret!)

• Owner / Borrower of Acquisition Funds: Development Authority of Jasper County (DAJC)
• Loan terms: Not to Exceed (NTE) $825,000; NTE 3.89%; NTE FINAL MATURITY 15 YRS. Plan is to borrow $805,000.
• Expect to rent to Tenants: Jasper County Board of Health & Oconee Community Service Board
• Expected Tenant Payments: NTE $3,800 / $2,200 respectively
• Tenants responsible for maintenance of leased space and any improvements to their leased space, including any build outs, improvements and/or renovations
• Jasper County shall make application for a Community Development Block Grant; if awarded, a portion of the grant funds (in an amount to be determined by the County) shall be used for certain agreed upon renovations of leased space and/or prepayment of the Board of Health’s lease obligations, which shall be applied by the DAJC towards outstanding principal of the loan
• Jasper County responsible for maintenance of roof, exterior walls, and heating and cooling systems
• County provides debt service guaranty for loan and agrees to pay costs of long term maintenance and insurance
• Tenants to carry insurance on leased space and add DAJC as additional insured DAJC to insure building under owner’s / landlord policy paid for by County
• Upon payment in full of the acquisition loan, DAJC will convey property to County

 So here is the summary.  The COUNTY does the following

• buys the building,
• guarantees the loan payments,
• will pay for the renovations necessary for the Health Department to use the building,
• pays for the insurance,
• pays for the maintenance of roof, exterior walls, and heating and cooling systems, and any other cost of long term maintenance

BUT somehow the DAJC will own the building, receive the rents, make the note payments, and THEN give the building back to the county when the note is paid.

 Does this arrangement make sense to anyone??  Is this a way for the county to give more money to DAJC to help increase David Dyer’s salary (which is now $72,000 a year plus expenses)??

Why is the public skeptical of secret deals?  Because it seems there is always someone in the background that is benefitting, and because there is a lack of transparency and information.  For instance, what are the agreed upon renovations and the cost of them?  What if there is no grant received?  The taxpayers will end up picking up that cost, too.

The public has a role in government, and that role is more than just sending in more and more money every year.  The BOC has a fiduciary duty to spend our money wisely and frugally; however, we do not know if that happens because of the secret deals made in executive session and the lack of information provided, even after the deal is approved.

 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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