Holmes County officials reach agreement on Project Gateway loan interest

After years of tension surrounding the financial obligations of Project Gateway, the Holmes County Board of County Commissioners (BOCC) and the Holmes County Development Commission (HCDC) came to a long-awaited resolution during a joint meeting on August 26.

At the heart of the dispute was the interest from the $4.4 million Busy Bee loan, a cornerstone of Project Gateway. Between March 2023 and November 2024, the County paid $606,534.46 in loan interest. While the BOCC carried the bulk of the payments, HCDC officials had long maintained that the project was a joint venture and that costs should be shared.

In a unanimous vote, the HCDC agreed to pay the County $288,779.02 — half of the total accrued interest. This comes in addition to prior payments from the Development Commission, which included $28,976.43 in February 2025 toward loan interest and $33,362.50 for land clearing costs.

Citizens and Commissioners demanded closure to the ongoing dispute over the loan interest causing a divide between the two entities. The loan, taken on to support the development of the Busy Bee travel center project, generated recurring debates over who should bear the burden of its mounting interest.

Monday’s agreement, however, marked a turning point. County and Development Commission leaders described the decision as a step toward cooperation at a time when Holmes County faces tight budgets and increasing demand for economic growth.

“This is about working together to do what’s best for Holmes County,” said HCDC Director Joe Rone. “We believe this agreement not only resolves past disagreements but also sets the stage for new opportunities.”

As part of the deal, the HCDC urged the County to reaffirm the original Project Gateway arrangement, which included a provision that 5% of the sales tax revenue generated from the development would be dedicated to the Commission. The HCDC proposed that the County contribute $100,000 annually for five years after Busy Bee becomes fully operational, with the understanding that the agreement would be revisited at that time. The Commissioners unanimously agreed to this, but County Clerk Sam Bailey affirmed that this is not legally binding as the next Commissioners can agree to halt payments during budget conversations in the future.

“The long-term commitment from the board evolves every term, and determines how to make that match with the budget, we don’t know what revenue is coming up,” stated County Attorney Nathan Nolin. “Listen, we just want to make sure we are doing the right thing by the citizens of Holmes County and make sure we are in good standing with the Development Commission because they have had a relationship with them for over 50 years; they had a charter in 1961. We just want to make sure we preserve that relationship, that is the most important thing. 

Commissioners expressed optimism that the compromise would allow the county and the development board to move forward together in attracting new businesses and strengthening the local economy.

With the Busy Bee project expected to bring significant revenue and job opportunities, both organizations stressed that the future of Holmes County’s economic development depends on shared commitment and partnership.