$1 million loan to help with ag center
By From staff reports
Published in News on September 14, 2016 10:04 AM
Tri-County Electric Membership Corp. in Dudley will receive a $1 million zero-interest federal loan that it will in turn loan to Wayne County to help with construction of the Maxwell Regional Agricultural and Convention Center.
The 10-year loan to Tri-County is through the U.S. Department of Agriculture's Rural Economic Development Loan and Grant program.
That program provides zero-interest loans and grants to electric cooperatives that then lend the money to local businesses and its members to support rural development.
As the county repays the loan to Tri-County EMC, the co-op will repay the USDA loan.
The portion of the funds provided by grants or by Tri-County's revolving loan fund, once repaid, will go back into the revolving loan fund, which will be available to assist with future rural projects in the area.
The USDA awarded Tri-County EMC an additional $18,767 grant, which it is loaning to Wayne County with the same terms and interest rate.
Assuming that Wayne County's financing for the center will be at 3.5 percent annually, the zero interest loan represent a savings of $192,500 over the 10-year period, county officials said.
"County Manager George Wood and I have turned over every rock we could find to help save county taxpayers money," said Wayne County Commissioner Bill Pate, who also chairs the commission's Agriculture Advisory Committee. "Mr. Wood did all the paperwork and applied for the grant."
Pate praised Tri-County EMC for its support of the $19 million project.
"Bob Kornegay (manager of marketing and member services at Tri-County EMC), as well as others including the (Tri-County) board, were instrumental in making this happen," he said. "We have a close relationship and have been able to work well together all along."
"We realize the benefits and importance of job impact, increase tax base, and community goodwill. When we help the county, we help all the citizens," said Tri-County EMC General Manager Mike Davis.
To date, other funding for the $19 million agriculture project includes $1.7 million in capital campaigns, $1.5 million from the N.C. Tobacco Trust Fund, $4 million set aside by the county over the past two fiscal years.
Groundbreaking for the Maxwell Regional Agricultural and Convention Center was held July 16. Site work is under way. The county is expected award the construction contract before the end of September.
The center will house the Cooperative Extension Service, Farm Service Agency, Natural Resources Conservation Service and Wayne County Soil and Water and have classrooms and a large lobby.
The center will be 1.5 acres under roof, and its assembly hall will seat 800 in a banquet setting and more than 1,500 when set up for a speaker.
It will hold 70 booths for a trade show or similar event.
The assembly hall also can be broken into four rooms of different sizes to accommodate crowds of 190, 210, 380 and 494 respectively.