The Habersham County Commission approved two agreements to finalize the privatization of the gymnastics program during the commission meeting Monday. The first agreement was for the asset purchase for the gymnastics equipment that the county currently owns. The second agreement was for the sublease of the gymnastics facility to Reign Elite and owner Neva Daniels.
Peggy Fortson, a representative of the Parks and Recreation Advisory Board, addressed the commission about the two agreements
Storm damage
Fortson explained to the commission that a committee was formed to negotiate the agreements with Reign Elite after the commission approved moving forward with the privatization of the gymnastics program during its December meeting.
Prior to the committee meeting to prepare for the agreement, the facility received storm damage on December 29 that blew off part of the roof at the old Clarkesville Mill.
Asset purchase
For the asset purchase, the committee recommended that the county sell the gymnastics equipment to Reign Elite for $50,000. Fortson told the commission that there is also an additional $70,000 in entrant proceeds that the county would retain.
The company would invest $30,000 in immediate repairs and renovations to the facility. It would also take over operations of the program and keep the fee structure and class schedule the same or similar for at least one year and guarantee participation for those who have pre-paid their fees for upcoming gymnastics competitions.
Commissioner Bruce Harkness questioned the $30,000 of repairs and renovations to the facility. Interim County Manager Tim Sims explained that the $30,000 was part of the request for proposals response submitted by Reign Elite and is unrelated to the repairs and renovations needed from the storm damage.
Harkness asked if the facility owner had started the roof repair. “They actually let us know Friday that the roof repair over our portion of the building was completed but they’re still doing interior remediation,” Sims explained.
The county will allow Reign Elite to be present during the disposal of damaged equipment from the recent storm so that items may be salvaged. Once the asset purchase contract has been executed, Reign Elite will be granted access to the facility so they can begin cleaning and restoration.
The county will also pay Reign Elite $500 a month beginning February 1 for the use of its facility by the gymnastics team while the Habersham facility remains unusable by participants.
“How many months do you think it’s going to take to get ours tenantable,” Harkness asked. “I would probably say the rest of probably this month and most of March,” Sims said. “ So it would be a couple of months we would be paying her that.”
Fortson explained that she had taken a tour of the facility and that it was in bad shape.
Sublease
For the sublease, Reign Elite will lease the facility from Habersham County through June 2026, at which time the county’s lease will expire and Reign Elite will negotiate with the facility owner for a new lease. County Attorney Donnie Hunt recommended that not only the business, Reign Elite, but also owner Neva Daniels be personally responsible as a personal guarantee to ensure payment of the lease continues with the facility through the remaining lease period.
Commissioner Kelly Woodall asked if limitations could be placed on how long the $500 fee would apply and could it be set not to exceed a certain date? Hunt stated that the commission could do that. Parks and Recreation Director Brooke Whitmire told the commission that the competition gymnastics team should finish up around the end of May.
Commissioner Ty Akins made the motion to approve the asset purchase agreement for $50,000 and limit the $500 per month fee through the end of June 2025. The motion carried 4-1 with Commission Chairman Jimmy Tench being the dissenting vote.
Commissioner Kelly Woodall made the motion to approve the sublease to Reign Elite, including all of the stipulations, through June 2026. The motion passed 4-1 with Tench being the dissenting vote.
