Habersham looks at reality of assuming authority debt

CLARKESVILLE - The Habersham County Commission again is finding itself in the position of having to take over long-term debt for one of its authorities.

This time, the Habersham County Industrial Development Authority is in danger of running out of money due to payments on debt.

During Thursday's budget hearing, Economic Developer J.R. Charles told commissioners the authority will run out of money later this year if it must continue making the payments for the Miller Logistics building and the land.

"We're looking at being functionally out of cash ... we would be out of money by August," Charles said.

Commissioners said taking over the payments on the Miller Logistics building, located in the industrial park near Baldwin, sooner rather than later would be in the county's best interest.

Habersham County Commission Chairman Andrea Harper discussed the matter following Thursday's budget hearings.

"We are taking some steps," Harper said. "We're going to have to take over some of their payments on the Miller Logistics building, and the land payment. It's another sign of what happened two years ago with the economy downtown, and it's just something that we're having to address and take care of."

Asked if this is a repeat of the situation with Habersham Medical Center, where the county had to take over the hospital and its debtfrom the hospital authority, Harper said, "Maybe to some degree it is. Totally different, but it does include a building that we will discuss taking over the ownership of - which, in my opinion, makes sense. If we're using taxpayers' money, then we need to own the building."

Harper said the ownership issue will be addressed soon with the industrial development authority.

"We haven't had a discussion about it yet," Harper said.

Currently, the county is looking at having to take over payments on more than $1 million in debt.

"I think we probably will refinance some of that to make it more palatable," Harper said.

In the agreement between Habersham County and its industrial development authority, executed several years ago, the county is obligated to take over the debt in the event the authority is unable to make payments.