EDA approves revised Midway Station loan agreement
Woodford Economic Development Authority Chair John Soper briefed members on the loan proposal by three local banks to cover the outstanding debt at Midway Station during their Friday, Jan. 24, meeting, with Soper saying, “We’ve got to get this done by the end of the month …” The bonds for the original loan from four local banks that paid for the land and infrastructure at the Midway industrial park came due at the end of last year. The new, three-year deal from Wesbanco, Citizens Commerce and Kentucky Bank is designed to cover the remaining principal of $2,067,769.74, as of Jan. 20, at a rate of 3.25 percent. Soper and Phyllis Mattingly, the assistant county attorney, also discussed the EDA’s agreement with the Midway City Council and Woodford Fiscal Court for those two governments to pay the interest on the loan – if the EDA can’t. Soper recently said that the EDA will be able to pay at least 24 months of interest on the loan, and more as it sells land at Midway Station. Last year, for the first time, the EDA was able to make the interest payments on those bonds, the most recent of which, on Jan. 2, was $31,461.90 for the last six months of the 2019. Soper said the new loan will include monthly interest payments, adding, “I think that’s better for us. We’ll just have them debit the account … and really, on an interest-only loan, that’s probably a more typical situation, to have the interest paid monthly, especially on a big loan like this …” Soper also discussed the release price for unsold land at Midway Station of $125,000 per acre for lots 2, 5 and 6. “That’s our better land and that’s the better B-5 (highway business) … (and those) are the ones we really need to push on the front end, and $117,000 per acre for the remaining B-5 and $47,000 per acre for the remaining I-1 (industrial),” he said. “The bank (Wesbanco) will get the the greater of the release price or 75 percent of the sale price …” A motion to allow Soper to sign the necessary loan documents passed unanimously. Treasurer’s report Treasurer Maria Bohanan shared the group’s Jan. 20 financials, including a beginning general operating fund balance of $114,115.56 and payments of $975 to HMB Professional Engineers, $975 to Mike Freeny, $345 to The Woodford Sun (for advertising a legal document) and the $31,461.90 interest payment to Wesbanco. The Jan. 20 balance sheet includes $80,262.60 in the general operating fund, $60,020.06 in an escrow account for interest payments, and Midway Station land valued at $3,021,000. Liabilities include $2,067,769.74 for the loan on Midway Station and a $3,319 monthly interest payment. The EDA did not meet in December. That month’s bills included $1,248 and $156 to Moore Law Office, $5,400 to RFH, PLLC for the annual audit, $409.50 to Wright’s Farm Service, $340 to the Sun (for advertising a legal document) and $200 for membership dues to the Kentucky Association for Economic Development Authorities. Midway Station marketing plan After meeting in executive session to discuss possible land sales and purchases, members voted unanimously to form a committee that will begin writing a RFP (request for proposals) to market Midway Station. Committee members will be Soper, Gene Hornback and Paul Schreffler.