Pike County supervisors learned last week they won’t have to repay a $522,000 state industrial grant if they meet certain conditions.
In 2009 the county received a Katrina Community Development Block Grant to build a rail spur and other work at the site of a proposed $11.2 million Indeck wood pellet mill on Highway 51 North, Magnolia. The stipulation was that Indeck employ at least 20 people, 51 percent of them low to moderate income.
The spur was built but Indeck pulled out, leaving a patch of undeveloped land. Board attorney Wayne Dowdy said Friday that MDA will not require repayment of the money if supervisors agree to hold any future developer to the same job requirements.
Supervisors voted 3-1 to accept the proposal, with Gary Honea opposing.
“I’m going to vote against it because I think we ought to try to sell it,” Honea said. He expressed concerns about imposing restrictions that might deter investors.
Supporting the proposal were supervisors Luke Brewer, Faye Hodges and Chuck Lambert. Tazwell Bowsky was absent.
Pike County Economic Development District Executive Director Wayne Sterling said the district board is OK with the MDA proposal.
“We’ve had numerous negotiations on that site and it has not been concluded,” Sterling said. “We think the 20 jobs is not going to deter a conclusion.”
Meanwhile, plans for another wood pellet mill remain stalled as Pike BioEnergy’s final option to purchase a tract of county industrial land on Highway 51 expired Dec. 31.
Supervisors also met in executive session Friday to discuss other economic development matters.
After the session, they voted 3-1 to assign a lease from Harper Industries to Fabricated Pipe for a plant in the old Fernwood Industrial Park and dismiss the county’s lawsuit against the companies. The suit had been filed to determine who’s responsible for repairs to the building. Honea opposed, saying supervisors need a release from liability if they’re going to drop the lawsuit. The business employs 80 people.
Supervisors also agreed to lease half of the old county-owned Kellwood Building in Summit to Lott Furniture Co. at $5,000 a month for 10 years. Newpark Drilling Fluids leases the other half of the building. Lott will use its half for storage. The rent will go to the Pike County Economic Development District.
