Washington County Commissioner James Booth, second from left, voiced disagreement with the Southeastern Ohio Port Authority’s $1.5 million community development fund to finance the purchase of the former AMP Gorsuch site. (Photo by Michelle Dillon)
MARIETTA – The Southeastern Ohio Port Authority is one step closer to purchasing the former AMP-Gorsuch.
During a Washington County Commission meeting Thursday morning, members approved the creation of a community development fund and initially contributed $1.5 million to the fund to allow the Southeastern Ohio Port Authority (SeOPA) to purchase the former AMPGorsuch site.
There were several stumbling blocks when trying to buy the property.
Commissioners first discussed helping SeOPA in some way purchase the AMP Gorsuch site during a March 28 commission meeting, a vote they approved 2-1 (Commissioner James Booth opposed). They allocated $1.5 million for community development and accepted the basic idea of a proposal from SeOPA to borrow the $1.5 million to purchase the site. Then, at a May 30 commission meeting, commissioners voted 2-1 (Commissioner Charlie Schilling opposed) to give a private company 28 days to finalize an agreement to purchase the site. That was followed by a 2-1 vote on June 27 (with Schilling opposed) to shelve the proposal for further discussion in light of concerns raised by Booth.
Those concerns included that SeOPA have an insurance policy that indemnifies the county from any liability at the site, that SeOPA set aside money to cover potential defaults, that the $1.5 million be spent on other needed projects, and more.
The June 27 meeting was the last time the SeOPA loan proposal was discussed in a commission meeting until Schilling made a motion Thursday to approve the creation of a community development fund and Commissioner Kevin Ritter seconded that motion.
“I think we can do more with our investment income,” Schilling commented on the fund and said that this money could be used to approve grants if the district applies for grants.
Schilling read a statement in support of the creation of the fund, saying that County Treasurer Tammy Bates has provided the county with $4.7 million in capital gains between 2021 and May 2024.
“The additional revenue our investments have generated is the only reason I thought it was important to support SeOPA in purchasing the AMP Gorsuch site,” said Schilling. “This partnership and purchase provides Washington County with an opportunity to attract business and industry, bringing back much-needed jobs.”
The former Gorsuch AMP site, located on State Route 7 across from Eramet, has been described by SeOPA as the county’s only opportunity to connect rail and river. The agency plans to connect the Muskingum River Industrial Park to the river and combine 455 miles of Ohio River waterfront with 50 miles of rail to return lost jobs, revenue and taxes to the region and open it to the global market.
Ritter spoke next. He said the county expects to receive about $2 million in investment income in 2024 and the fund will be subject to the same rules and protections as money in the general fund.
“In other words, two Commissioners would be needed to approve an allocation of funds to authorise expenditure from this item,” said Knight. “In other words, it can be reclaimed if necessary.”
He also pointed out that the money to go into the community development fund is capital gains, not tax revenue. He also mentioned a deal in the works to help SeOPA buy the site that was not included in the original loan proposal.
“The deal the Treasurer wants to make with the (SeOPA) would be 6% (interest),” said Knight. “This would bring even higher revenues to the district and we would invest the money locally.”
Booth responded to the statements of support with questions and concerns he has about the Fund and SeOPA and read a statement opposing the resolution for the record.
He said he was in favor of infrastructure development and then asked how much money would go into the fund to set it up. Schilling replied that $1.5 million would be used to set up the fund.
Booth expressed concerns about who could apply to use the funds from the fund.
Schilling replied that the question of who could receive the money was a discussion for the future and reiterated that the money from the fund could be used in the future to increase the country’s competitiveness when applying for grants.
“I believe our first duty is to preserve the land,” said Booth. “We have done many projects with great success, but are we trying to get too big too quickly? In my opinion, that sometimes allows you to spend more.”
Booth asked if SeOPA was still negotiating with the county treasurer about a bond to purchase AMP-Gorsuch, and SeOPA Executive Director Jess Roush confirmed this.
“So the $1.5 million invested in that fund and the $1.5 million from a bond to purchase the AMP site is a potential $3 million for (SeOPA)?” Booth asked.Could that happen?”
“No, I don’t think so.” Schilling answered. “Simply put, the $1.5 million that I’m about to transfer to this line item is for this bond, specifically for the purchase. So right now it’s a maximum of $1.5 million, OK.”
Ritter said he supported the creation of the fund, but he did not support the AMP Gorsuch site “becomes a black hole for the district coffers.”
He said he was not interested in spending more than the $1.5 million, and Schilling explained that they would provide the $1.5 million as seed money to develop the site and that he did not want to go any further.
Booth said he was not in favor of transferring $1.5 million to the fund and asked that the money not be transferred until further discussion could be had on the matter. He also made a motion to delay the creation of the fund.
Ritter and Schilling voted against the fund bill, Booth being the only one to vote for it. Then a vote was taken to approve the creation of the fund, which also passed 2-1, with Booth voting against. The fund was then passed 2-1, with Booth voting against, and $1.5 million was transferred to the fund.
Following the meeting, Schilling confirmed that receipt of the $1.5 million from the Community Development Fund for SeOPA was approved.
Ritter asked if the original loan proposal needed to be voted on in light of the creation of the Community Development Fund, and commissioners decided to put the original loan proposal on hold until they could discuss with the district attorney how to appropriately address it.
Roush said after the meeting that he was “relieved” that the fund was established, and he pointed out that SeOPA will repay the $1.5 million because it is a bond and the county will earn several hundred thousand dollars in interest on the bond.
He said SeOPA has not yet signed the bond papers and originally planned to buy the site in late September, but the company still believes it has the ability to do so.
Michelle Dillon can be reached at [email protected]
