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County suing Front Line Apparel Group
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By Russell Hood

The Webster Progress-Times

WALTHALL - The Board of Supervisors has authorized a law firm to sue Front Line Apparel Group and its principal officers for defaulting on economic development loans.

The company owes the county nearly $350,000 as repayment of two economic development loans, which were funded through grants from the Mississippi Development Authority. The county is obligated to make every effort to collect on the loans.

Front Line's plant in Mathiston closed in mid-July. Last fall, as previously reported, supervisors hired Butler Snow attorneys of Jackson to represent the county "in regards to pursuit of relief against FLAG for its default in its loan obligation to Webster County." They also authorized the law firm to take legal steps to recover and sell all equipment recovered from FLAG and to bring suit against the company.

On Jan. 19, the county board approved another related motion, according to the minutes. Supervisors voted to authorize Butler Snow to file suit against FLAG, and principal officers Victor Winogradow and Ron Levine individually, "to collect on their obligations to the county, state and otherwise."

Levine and his wife, Christine, have filed for Chapter 7 bankruptcy, according to a letter of notification to Webster County, the Board of Supervisors and MDA. Chapter 7 bankruptcy proceedings involve liquidation of the borrower's entire non-exempt property. The amount that is obtained through selling of these assets is then turned over and dispersed among his creditors to pay the debts.

A "corrected amendment" from U.S. District Court in Connecticut shows the amount owed Webster County is $347,000.

Jan. 19

Also on Jan. 19, four bids received for the purchase of one or more new tandem-axle tractor trucks were taken under advisement. On Friday, a representative of one of the bidders, Tri State Truck Center, was present.

Minutes of that meeting reflect that the board accepted Tri-State's bid of $97,356 to buy one of the trucks. Although the company was not the lowest bidder, its bid was accepted for a variety of reasons, including a guaranteed buyback (residual) and past experience with Tri-State's service.

In related action Monday, the board accepted a quote from BancorpSouth to finance the truck for two years for 3.25 percent interest.

After a public hearing to consider an application to the Mississippi Development Authority for an emergency grant to the Mt. Zion Water Association, the board voted Jan. 29 to apply for the grant as soon as possible.

Sierra Gary was hired as a part-time worker at Justice Court through June 30, with her salary and fringes to be paid by the Golden Triangle Planning and Development District. Amy Hart and Shea Holmes, who are full-time dispatchers at the sheriff's office, were authorized to attend TAC officer training Feb. 1-5 in Pearl.

Monday

County Engineer Robert Willis met with the board Monday regarding planned bridge projects on North Sapa Road that also involves Choctaw County.

Also Monday, the Board of Supervisors:

¥ voted to amend the compensation of contract beaver trapper Darrell Sappington after meeting with him. He will now be paid a $50 setup fee for the first beaver and $10 for each one caught thereafter, plus reimbursement of 30 cents a mile. Sappington will be paid by the supervisor's district in which any beavers are caught. Additionally, District 2's road maintenance fund was amended to create a beaver control fund.

¥ voted to transfer $14,000 from the general fund to the unemployment fund, which will cover a negative balance and provide about $3,000 as the amount necessary to maintain that fund for another quarter. The fund has been in the red because three former Sheriff's Department employees are drawing unemployment benefits, according to the discussion.

¥ voted to contract with Watkins Ward and Stafford to prepare Government Accounting Standards Board-compliant financial statements for the county.

¥ authorized the signing of the contract with Jan Butler, county prosecutor, for handling forfeitures through the sheriff's office, retroactive to Oct. 1

¥ discussed notification from State Aid Engineer Brooks Miller that Webster County's share of state aid budget cuts will be nearly $49,000.

Charles McClellan, vice president of the board, has presided at the last three meetings in the absence of supervisors President Robert Hitt. Minutes of previous meetings state that he was absent because of health issues.

Hitt had hernia surgery last month at North Mississippi Medical Center-Tupelo, McClellan said Monday, and was placed in ICU for a week after developing a fever and congestion. McClellan said Hitt told him Monday morning that he expected to be released later that day.

The board meets again Feb. 16 at 8:30 a.m.

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