County wants to cut EDA funding

Loudon County Commission will seek legal advice from county attorney Bob Bowman on reducing its yearly contribution to the Loudon County Economic Development Agency.

The decision came Monday after commissioners initially discussed a reduction of $12,545 for the EDA in the upcoming fiscal year. Commissioner Van Shaver said the reduction was due to an expected tight budget.

A flurry of motions about the EDA were discussed and voted on.

Commissioners Bill Satterfield and Van Shaver eventually motioned and seconded, respectively, to get Bowman’s advice, which passed 8-2. Commissioners David Meers and Julia Hurley opposed.

“That’s not the county’s attorney, that’s the mayor’s attorney,” Hurley said afterward. “He’s already given his statement. The mayor read it, we heard it. Really no point in the mayor and the county taking on the expense of having to pay him to come back down here just to repeat what he already sent in an email.”

Loudon County Mayor Rollen “Buddy” Bradshaw said Bowman told him the county would need a unanimous vote from all four entities involved in the EDA to make a change in funding. The county, Lenoir City, Loudon and the Lenoir City Committee of 100 are partners in the EDA agreement.

Commissioners Meers and Matthew Tinker initially motioned and seconded, respectively, to remove the funding reduction and send a letter asking to discuss revisions to the interlocal agreement every 3-5 years. The motion passed 7-3, with Commissioners Shaver, Adam Waller and Kelly Littleton-Brewster opposing.

According to a 2008 interlocal agreement, the county allocates 68.9 percent to the EDA, while Lenoir City gives 13.9 percent, Loudon gives 15.3 percent and the Committee of 100 gives 1.9 percent. The county’s current allocation is $162,545.

“We’re paying 68 percent, which is an annual right now at $162,000 a year we’re pumping into EDA,” Shaver said. “Put that at 10 years we’re $1.5 million we’ve spent with EDA. ... This is the EDA board that needs to address this. If the funding changes then the board needs to make recommendations to increase their funding from other sources, whether that be the cities or new sources, doesn’t matter.”

Shaver and Satterfield at one point motioned and seconded, respectively, to send a letter telling the EDA in two years it would reduce the allocation to one-third of current levels — to be matched by Loudon and Lenoir City — to a fixed $78,638. The motioned failed 5-5, with Hurley, Tinker, Meers, Gary Whitfield and Harold Duff opposing.

After the meeting, Shaver said the Committee of 100 “gives such an insignificant amount” he only wanted to focus on the larger bodies of funding.

Whitfield opposed “drawing a line in the sand” with setting county financing at $78,638.

“If we’re not serious in wanting to pursue this, forget about the motion, just business as usual and let’s proceed,” Satterfield said. “We can sit here and say, ‘We’re going to talk about this in the next two years,’ and I can guarantee you come month 24 nobody will have said one frazzling word.”

At one point Loudon Mayor Jeff Harris, representing the EDA board, referred to Tennessee Code Annotated 6-58-114 that sets a formula for determining EDA funding by the population established by the last census.

Harris referred to the interlocal agreement, which could be altered if unanimously approved by all parties involved.

Commissioner Kelly Littleton-Brewster and Shaver motioned and seconded, respectively, to send a letter with a notice of two years that the county would like to have discussions of a one-third split. She removed the dollar amount. The motion failed 6-4, with Tinker, Satterfield, Whitfield, Duff, Meers and Hurley opposing.

“The way that it comes to a conclusion is they can negotiate, that’s option one, and negotiate it to whatever the terms and you’ll pay that,” Tinker said. “If you don’t like those terms, you can pay, what, $5 and then they can sue you for the rest, or they cannot sue. Those are the two options. You can pay whatever you want at any time. The board will then have the option to accept that as your payment or to sue you for the rest.”

Shaver disagreed, again referring to TCA 6-58-114.

“If any one of the parties fails to make their payment, the board, EDA board, may establish such sanctions or conditions as deemed proper,” he said. “There’s nothing about a lawsuit. The board can say, ‘We’re not going to the county’s EDA work anymore.’ Well, we don’t get anything anyhow, so I don’t think lawsuit is an option.”

EDA board members were present, including Harris, Lenoir City Councilman Eddie Simpson and Lenoir City Mayor Tony Aikens. Each spoke during public comment. EDA Executive Director Jack Qualls also attended.

“We think the agreement speaks for itself,” Harris said. “We’re pleased with our director and the work he’s done. Finally got a lot sold at Centre 75. A lot of things were accomplished this past year that we are proud of and we think he’s doing a good job there.”

Simpson agreed.

“I feel like, I know this equal pay for the EDA has hit a big kick in the last year or so,” Simpson said. “We’ve always had one commissioner really pushing for that. You’re not going to like this but I think he is a cyber-bully. All he does is try to embarrass anyone else on this commission and anybody in the city or county that will listen to him to try to get his way. I hate to see that for our county.”

In other news, Loudon County Commission:

• Put Duff on the TCCA Legislative Committee. Hurley, who was also initially considered, was not added.

• Agreed to spend $6,174.80 for an election travel trailer.

• Passed an increase to county employee health insurance of about 4.1 percent.

• Passed a delegation resolution to the Loudon County industrial development board for the Project Strength payment in lieu of taxes agreement.