FLAG execs, board to address overdue loan

The Webster Progress-Times

Front Line Apparel Group executives plan to meet with the Board of Supervisors next month about the company's past-due loan payments to Webster County.

The company has not made a monthly payment since September on an economic development loan from the county, according to board discussions. A Mississippi Development Authority grant to the county funded the loan.

Last fall, Front Line executives requested a repayment moratorium, which MDA later granted until Feb. 1. The company was also supposed to make the first payment on another loan, received last August, by then. FLAG received the loans for working capital and to buy equipment during start-up operations at the Mathiston plant.

Chancery Clerk Russ Turner told supervisors on March 2 the county had yet to receive any of the moratorium payments and interest, nor any payments on the second loan. He also said Front Line executives never signed and sent back the moratorium agreement.

"They just took it," he said.

Board attorney Buchanan Meek Jr. agreed to send a letter to company executives demanding payment of the amount in arrears by the next meeting, which was Monday.

"I told (FLAG President Ron Levine) if he didn't respond by today with the money we were going to start collection procedures," Meek reported to the board Monday, when the payments of about $65,000 due on both loans had yet to be received. He noted that less money would have been due if FLAG had officially agreed to the conditions of the moratorium.

"I don't know why they think they can ignore their obligations," he said.

Because of the absence of Turner and Charles McClellan (District 5) from Monday's meeting, the board tabled any further action and directed Meek to call Levine about the matter.

Meek said Tuesday that Levine and Victor Winogradow, vice president/chief financial officer of FLAG, plan to be at the board's April 6 meeting. Both men live in Connecticut.

Ruthie Salley (District 2), an employee of the company, recused herself from the boardroom during the March 2 discussion.

Railroad

Resolutions

Development Council Director Cynthia Wilson, in her position as chair of the North Central Mississippi Railroad Authority's executive committee, appeared before the board March 2. Supervisors approved motions at her request to adopt and sign two resolutions related to the proposed repair and renovation of the old Columbus & Greenville Railway line.

One resolution supported passage of a House bill to provide $14 million for the project. The House passed the bill last month and the Senate was to consider it Wednesday.

"This would be a tremendous first step toward getting the line revitalized," Wilson said.

The other resolution states the board's desire to be listed as a potential recipient of grant money from the federal economic stimulus package for the revitalization of the C&G Railway.

Wilson gave an update to the board Monday, noting that if the Senate were to pass the C&G bill, it would then go to conference. She also reported Monday that the council's annual Recognition Banquet is set for April 14.

Other Business

Also on March 2, the board voted to use District 4 bridge funds to buy land from Heritage & Heritage Co., and Upton and Thelma Sparkman for rights-of-way on a bridge project on South Sapa Road.

Supervisors adopted a letter submitted by Sheriff Phillip Smith stating that full-time employees who the county sends to the law enforcement academy, a refresher course or to any type of other schools that are required by the state must remain as a employee of the county for 18 months after completing the course.

Any employee who fails to remain with the county will be obligated to pay back the salary, tuition, and living and travel expenses he or she received during their training. Affected employees will be required to sign the letter when hired and it will be placed in their personnel file.

Also at Smith's request, supervisors voted to amend the budget by adding donations for a drug dog to the general fund.

The board also approved repayment of interfund loans.

March 16

At Monday's recessed meeting, Dock Gabbert of the county engineer's office addressed the board about Local System Bridge Program funding. The state program is intended for bridge replacements or repairs.

Gabbert noted that legislation was awaiting the governor's signature which would allow the Mississippi Department of Transportation to review counties' use of the LSBP funding. If counties don't start bridge replacements or repairs within two years of receiving funds, MDOT could redistribute the money among other eligible projects.

All of Webster's LSBP money is obligated and therefore it is not among counties that stand to lose money. Gabbert asked the board to let him program another bridge in case the county received an additional allocation before the next regular round of program funding, and left related paperwork.

Barry Rushing addressed the board about emergency response and storage of supplies at the County Office Building. Karen McGregor of Affordable Employee Benefits LLC addressed the board about life insurance.

In other action, supervisors:

¥ approved a cost bill submitted by the circuit clerk for the February murder trial of Darrell McBride, which was moved here because of pretrial publicity in Attala County. Jurors convicted him of that county's 2002 murder of Charles Green. The bill will be forwarded to the Attala County Board of Supervisors for reimbursement as allowed by state law.

¥ approve the attendance of the three newly elected election commissioners to attend a seminar in either Pearl or Raymond on March 24 or 30, to prepay their expenses as necessary and to reimburse their expenses to the extent allowed by law. The motion included the statement that the county does not reimburse overnight expenses on one-day seminars absent extreme circumstances.

¥ voted to raise the salary of Chancery Court and Youth Court/Special Court Bailiff Jimmy Forrester from $7.50 to $10 an hour and amend the budget accordingly. A Youth Court grant already received will cover the salary increase.

¥ voted to fill four abandoned wells and recess until 8:30 am. March 31.