| 112th Year, 48th Issue | Thursday, July 12, 2001 | Sparta, North Carolina |
The Sparta Town Council on July 3 approved a change to the financing terms in its plan to purchase the present Blue Ridge Electric Membership Corporation Building.
The town plans to use the property as a new town complex — replacing the present town hall and vehicle maintenance facility — once BREMCO moves into the former Lowe's Home Improvement Warehouse building, which it acquired earlier this year.
In May, council approved a financing arrangement calling for the town to make a down payment of half the $1,110,800 purchase price during the 2001-02 fiscal year. The remainder was to be financed with 10 annual payments of $71,937.18 each.
Last month council held a public hearing on the building purchase and financing agreement.
Douglas explained last week, however, that when the town began negotiations with BREMCO, an arrangement calling for annual payments of $100,000 over six-plus years, after the $555,400 down payment, was discussed. Douglas said the loan plan was extended to 10 years because of the possibility of the N.C. General Assembly withholding franchise tax revenues.
On March 22 BREMCO's board passed a resolution approving the sale, but that resolution included the $100,000-payment terms.
Douglas said, "The situation in Raleigh has improved, so I'm not concerned
about withholding the franchise tax."
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