The Habersham County Commission will hold a called meeting for Wednesday, November 6, to discuss the animal shelter design and financing for its construction. Depending on the financing option, the possible reactivation of an authority.
The commission is expected to take action on both matters during the meeting.
During the October work session, the same topics were discussed. Public Works Director Jerry Baggett presented the design of the animal shelter that included value engineering reductions. The reductions resulted in more than $2 million in cost savings for the project. The project was originally estimated to cost over $9.5 million to construct. The value engineering reductions reduced the estimated amount to a little over $7.5 million.
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However, part of the value engineering reductions removed the ability for the animal shelter to be expanded in the future, a measure the commission did not consider.
Baggett was instructed to allow the design of the shelter to be expandable and to renegotiate with the architect to possibly lower the price to redraw the plans to include the value engineering.
Financing options
Chief Finance Officer Tim Sims explained the financing options that were available for the commission to consider during the October work session.
One financing option he gave the commission was to use the certificate of participation (COP) financing through ACCG. This is the same financing that the county used to finance the construction of the administration building. Sims told the commission the COP option is similar to a lease/purchase agreement. He explained, of the options available, this one has the highest interest rate. It would only take commission approval to move forward with this option.
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Another funding option is the reactivation of the industrial development authority. Through that authority, the commission could receive financing for the animal shelter. This option would allow the county to borrow the money possibly at 4% interest or less. However, they would have to reactivate that authority.
Industrial Development Authority
County Attorney Donnie Hunt explained to the commission about an antiquated industrial development authority that still exists but has been inactive. The industrial development authority was enacted as an amendment to the constitution by the county commissioners in 1964. When the state’s constitution was rewritten in the mid-1980’s, the county commission reinstated the authority.
The issue that exists currently is the makeup of the authority. The inactive authority was set up with three commissioners, the president of the Clarkesville chamber of commerce, the president of the Demorest/Cornelia chamber of commerce, the president of the junior chamber of commerce, and the president of the Demorest civic club, for a total of seven members.
Hunt told the commission that the authority could potentially be reactivated with only 4 members. Those members would be three commissioners and the president of the Habersham County chamber of commerce. Since the board would be set up with four members, it would require the affirmative vote of three members to pass anything.
He told the commission during the October work session that the commission could institute the authority in November. The commission could reinstate the authority by appointing the four members.
Public facilities authority
Commissioner Jimmy Tench asked Hunt, “There’s not much difference than that and a facility authority, are there?” Hunt responded, “Really not.”
Over the last two years, the commission has discussed the creation of a public facilities authority. Later, the reactivation of the constitutional industrial development authority. Both authorities were discussed as a way to fund various projects during that period, such as airport hangars, the jail, and the SPLOST 7 projects.
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However, neither authority gained traction among the commissioners. In fact, during the April 17, 2023 commission meeting, Commissioner Dustin Mealor made the motion to remove the reactivation of the constitutional development authority from the commission meeting agenda that the commission approved.
The Habersham County Commission will meet Wednesday, November 6, at 6 p.m. The meeting will be held in the Jury Assembly Room in the Habersham County Courthouse at 295 Llewellyn Street in Clarkesville.
