County near decision on fairgrounds

Published 12:00 am Monday, July 2, 2012

By Karissa Minn
kminn@salisburypost.com
SALISBURY — County commissioners say they like the fair association’s latest proposal to buy the fairgrounds, but the two groups still need to work out some details.
“We should have a decision Aug. 6, one way or the other,” said Chairman Chad Mitchell.
The Rowan County Fair Association offered to buy 30 acres of the property for $500,000. It would finance the purchase with a $350,000 private mortgage and a $150,000 second mortgage financed by the county.
The fair association would pay only interest to the county for five years, at which point it would pay off the entire second mortgage.
Commissioner Jon Barber moved to accept the offer at Monday’s meeting of the Rowan County Board of Commissioners.
Board members said the new proposal is better than the association’s alternate offer to buy 25 acres of the property outright for $375,000.
But Commissioner Jim Sides said the price is still too low.
“I’m not willing to sell the property for $16,667 an acre,” Sides said.
Fair Manager Johnny Love said the private loan amount would only apply to the appraised value of that 30 acres. Sides suggested changing the loan to $300,000 and raising the second mortgage amount to $200,000.
Barber’s motion included the right of first refusal on the remaining 20 acres of the property, free use of the parking area for 10 years and a 2 percent interest rate.
Sides said the association should pay a prime interest rate, but it can have seven years instead of five to pay off the second mortgage. He doesn’t support granting the right of first refusal.
Mitchell proposed directing the county attorney to work out contract details with the association’s attorney.
“The fair association is going to have to go back to their board to get anything approved,” Mitchell said. “Until that board can sit down and discuss it, we’re not going to have a final agreement anyway.”
The board agreed to wait, but Commissioner Raymond Coltrain said the negotiations shouldn’t last more than 30 days.
“Remember, we’re dealing with a nonprofit that’s for the benefit of the citizens, not a private business,” Coltrain said. “And this has been going on for a year now.”
The association has submitted several different offers to the county over the past year. In March, it proposed paying $1 million for the whole property with county financing, but commissioners said they wanted the sale to be privately financed.
On Monday, Barber agreed to table his motion to the next meeting on Aug. 6. The county commissioners have cancelled their second July meeting.
“This has gone on long enough, in my opinion,” Barber said. “Let’s get this back before the board and get this done.”
Currently, the fair association pays $25,000 per year to the county to rent the fairgrounds. Love has said that the buildings need repairs and renovations, but the association doesn’t want to invest more money into them unless it owns them.
The whole property has been appraised at $1.3 million, and the fair association says it has made about $300,000 worth of improvements so far.
Contact reporter Karissa Minn at 704-797-4222.
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In other business
Rowan County Commissioners also:

• Agreed to support Rowan-Salisbury Schools’ pursuit of an energy-saving contract with Energy Systems Group of Spencer. The board still will have to approve a final contract before it is submitted to the Local Government Commission.
The proposed $5.1 million in improvements would include new windows, insulation, light fixtures, water valves, water closets and two steam boilers. According to the school system, the project would save enough of the monthly utility bills to pay for itself, and the company would pay the difference in savings if it doesn’t.
• Approved several board appointments, including the reappointment of Linda Lowman as the county’s representative on the Rowan-Kannapolis ABC Board.
• Renewed a hangar lease at the Rowan County Airport for Delhaize America Inc., formerly known as Food Lion.
• Approved the use of the old social services building on Mahaley Avenue instead of the Salisbury Civic Center as a one-stop early voting site for the November election.
• Deemed a sheriff’s vehicle as surplus and donated it to the town of East Spencer. The car had been awaiting auction and will replace one of the town’s own police vehicles that blew a motor.
• Approved Juvenile Crime Prevention Council bylaw amendments.
• Accepted $50,000 from the Blanche and Robertson Family Foundation and $75,000 from the Cannon Foundation for Rowan County Smile Center facility renovations. The health department also would use up to $100,000 in Medicaid escrow funds for the project, as previously approved by commissioners.
• Accepted a federal Beacon Grant of nearly $300,000 to complete the health department’s electronic medical records program.
• Honored retiring Health Director Leonard Wood.