City seeks pro rata share of any JDA loan payments
Another of the creditors for the Grady County Joint Development Authority is looking to be repaid money it loaned the authority to ease its financial burden.
After reading last week that Grady County commissioners wanted to discuss payment on a $594,158.94 loan made to the JDA before voting to the renew the note, Cairo city officials have also stated publicly their interest in receiving payment for the $129,500 the city has loaned the JDA.
Both the city and the county put up additional public funds to assist the authority in paying the debt service on the former Higdon Furniture Company facility on Wight Road.
During the meeting of the Cairo city council’s finance committee Monday, city officials expressed their desire to collect on the money loaned to the authority if a payment is made to the county.
The only repayment of any of the money loaned by the two local governments was a payment of $30,324.25 last March that was paid to Grady County.
No payment on the $129,500 owed to the city has been made to date, according to Cairo City Manager Chris Addleton.
“Whenever the authority makes any payment on the notes I would think we should get our pro rata share,” Finance Committee Chairman James H. (Jimmy) Douglas said Monday.
City Manager Addleton said he had told JDA officials when payments on the loans are made the city would seek its share of the payments.
Unlike the county which loaned the JDA a lump sum, the city paid the JDA $3,700 per month for almost three years. The final installment was last June.
After leasing the former Higdon Plant last fall to Woodhaven Industries the financial picture for the authority greatly improved.
Woodhaven is leasing the facility at a monthly rate of $9,266.67 through July 31, 2014 with the option for three one-year renewals.
Before negotiating the new long-term lease, the authority had been leasing a portion of the facility to Woodhaven since November 2011 at a rate of $6,000 per month.
Grady County commissioners have invited JDA Chairman Charles M. Stafford to attend the April 16 commission meeting to discuss renewal of the loan and a repayment schedule.
