EDA $1 million-plus in the black
The Woodford County Economic Development Authority (EDA) unanimously approved a treasurer’s report showing the group’s assets are more than $1 million higher than its liabilities. Copies of what EDA Chairman John Soper referred to as a “draft balance sheet” showing total assets of $3,531,964.97, total liabilities of $1,477,092.74 and $1,054,872.23 in equity. All of the figures relate to Midway Station, including $2,477,092.74 in outstanding bonds to four area banks that come due at the end of the year. Soper said the document reflects the industrial park’s recent $3,430,000 appraisal by Wesbanco. “The purpose of that appraisal was to justify our request for the lot release fees going forward as well as being able to use the same appraisal when we renew our loan in December,” Soper said. “That appraisal was based on significantly higher land prices individually, but when you do a discounted cash flow to the time that it takes you to sell, you come back with these numbers. I was very pleased with the appraisal …” Land purchased by Imperial Asphalt was not included in the appraisal, Soper said. “This has the impact of substantially raising our book equity from $560,000 to over a million dollars. Of course, part of that is the increase in cash we’re showing from selling land,” Soper said. The sheet also showed equity of $1,054,872.23. EDA member Maria Bohanan asked if a category would be added on the liability side showing land sold at less than its appraisal price. Soper called it a good question, and that he believed they’d have to go back and see if the discount exceeded the appraisal’s discounted value, then make an adjustment. “I think in my conversation with the bank that our loan to debt ratio is 72 percent, but our loan to release fees (ratio) was 68 percent. We can’t sell anything for less than our release fees unless the money comes from someplace else to pay it. So I suspect that even if we sold at a discount, our release fee … as long as we deducted that amount, we’ll stay on track,” Soper said. Barnhill Chimney not coming Soper said that the owner of a company hoping to make chimney caps at Midway Station had decided not to purchase the land after all. A motion to return Brion Barnhill’s $5,000 option fee in exchange for the core drilling report he paid for passed unanimously. A similar deal was struck when a boat dealer decided not to move to the industrial park, Soper said. Midway Station In other Midway Station-related news, Soper announced that The Journey Ministries, Inc. would close on its land purchase the following Tuesday (July 30) and Tru Blue Hemp was moving forward with its plans. Of the latter, Soper said equipment that will be used by the hemp processing company was in such demand that it would take 120 days to obtain, rather than 60. The EDA voted unanimously to approve an escrow and pledge agreement for $60,000 from the proceeds of the sale of land to Imperial Asphalt. A motion to put that money into a certificate of deposit passed unanimously, as did a motion to nominate five bank depository signers (Soper, Bohanan, Paul Schreffler, Courtney Roberts and non-board member/treasurer Mike Coleman). New car wash In the public comment portion of the meeting, Soper said a second car wash was coming to Versailles. Pattie Wilson, director of the Versailles-Midway-Woodford County Planning Commission, said the full-service car wash will be built in the vacant lot between Jimmy John’s and Kroger.