By CAROL KENT SMITH
The Holmes County Board of County Commissioners (BOCC) is demanding repayment from the Holmes County Development Commission (HCDC) for what officials are calling the public’s share of interest accrued in a joint economic development venture.
In a formal letter sent this week, the BOCC gave the Development Commission a September 30 deadline to reimburse $160,000, which represents the first half of the interest the county paid on a $4.4 million loan for the acquisition of property that the future site of the planned Busy Bee travel center near Interstate 10.
Total interest paid on the loan was $604,534.46, with HCDC paying $33,362.20 to clear the land and $28,976.43 toward the interest, leaving the net balance of the interest at $557,558.03.
The reimbursement demand follows a unanimous vote by the BOCC during the August 5 regular meeting. Commissioner Clint Erickson, who initiated the motion, cited the original nature of the deal as a joint venture, referencing assurances made by the Development Commission and HCDC Executive Director Joe Rone that taxpayers would not bear the cost of the project.
“The Development Commission Executive Director approached the BOCC with a request to engage in a joint venture agreement to facilitate this project,” said Erickson. “The BOCC acquired the property and entrusted its development to the Development Commission, incurring a little over $600,000 in interest, along with costs for maintenance and tree removal, while awaiting its sale to a developer.”
Known as Project Gateway, the project was formalized in a 2022 Joint Venture Agreement and a separate Interlocal Agreement between the county and the HCDC. These agreements outlined collaborative responsibilities in the purchase, marketing, and eventual development of three parcels totaling approximately 98 acres.
Under the terms of the Joint Venture Agreement, the county held a 95% stake in the project, while the Development Commission held 5%. Despite the disproportionate ownership structure, both parties agreed to work in tandem on development, with the Development Commission managing marketing and real estate aspects.
The Interlocal Agreement further clarified that 100% of net proceeds from the sale of the property would be used to reduce the loan. However, neither agreement explicitly obligated the Development Commission to cover a portion of the interest, which is now at the center of the dispute.
Still, Erickson insists that the public deserves to be reimbursed.
“Given that this initiative was established as a joint venture and considering the Development Commission Executive Director’s assurance during a BOCC meeting that ‘this project would not cost the taxpayers a dime,’ I believe it is only right for taxpayers to be reimbursed at least half of the interest incurred,” he said.
The property in question was sold in 2024 to developers of the planned Busy Bee travel center, which is expected to bring new jobs and increased fuel tax revenue to Holmes County.
Rone has indicated that both the county and taxpayers would see a return on that loan from the Busy Bee’s development, stating in the July 25 HCDC meeting that the travel center is projected to create more than 130 jobs and generate more than $2 million in fuel revenue annually for the county.
According to the County’s demand letter, the $160,000 represents the initial half of a potential $320,000 in total interest the BOCC believes should be shared by both entities. The letter, signed by BOCC Chairman Earl Stafford, states if the Development Commission fails to provide the payment by the September 30 deadline, the county will cease funding of the Holmes County Development Commission effective October 1. The commission currently receives approximately $34,378 a year from the county – all of which is allocated to support the HCDC administrative assistant’s position, funding a portion of her salary and her benefits such as state retirement and health, dental, and vision insurances.
Erickson, who said he reviewed Development Commission meeting footage, expressed concerns about comments made by Rone implying the Commission had no legal obligation to repay the interest.
“I am also quite concerned that if we do not see any progress, or the project doesn’t come to fruition, the board should ensure that the remaining interest is recovered so that taxpayers can be compensated fairly,” Erickson added.
More than $5 million in state and federal infrastructure grants have been allocated to support Project Gateway, including road access and utilities. Grant funding was based on the number of projected employees and their pay scales, and Busy Bee’s developers have signed an agreement to pay back those grants should the project not come to fruition; however, as of this week, the project is still slated to be completed by December 2026, according to Rone.
Currently, the Development Commission and Board of County Commissioners are actively working to set a joint meeting to seek a resolution to the issue.
“I feel like we can work together and resolve any differences in moving forward for the betterment of Holmes County,” said Rone. “A couple years from now, everyone will be extremely happy that the county and the development commission worked so hard together to get this done.”
Staff Report 