News Column

Fiscal Court amends budget for stave mill loan

August 18, 2014

By Brad Stacy, The Morehead News, Ky.



Aug. 18--Rowan County Fiscal Court met in special session Friday to pass an emergency budget amendment for the benefit of American Stave Company's stave mill being built on KY 377.

Judge-Executive Jim Nickell said the budget change was needed to meet various time requirements of the agencies involved in securing the equipment loan for ASC.

"This amendment is for the $1 million Community Development Block Grant to fund the loan for the stave mill," said Nickell. "At Tuesday's regular meeting, we will authorize our treasurer to release those funds to the Economic Development Council (EDC)."

The grant/loan will provide the stave mill with $970,000 to help purchase equipment for the project. Gateway Area Development District will receive $30,000 to administer the grant.

Nickell said the loan will allow the stave mill to begin purchasing equipment more quickly.

Independent Stave Company (ISC), the largest barrel manufacturer in the world, selected Rowan County last year for its fifth stave mill to supply white oak lumber to barrel making plants.

ASC, a ISC subsidiary, will operate the facility. An estimated 70 jobs will be created through the investment of $7.2 million.

The company purchased 62 acres of land on KY 377 and is currently constructing the facility.

"This company didn't need to do this," said Nickell. "It's really helping us. When repaid, the $970,000 goes back to the EDC to be used for other economic development projects in Rowan County."

"When they repay the money and create the jobs, the money will be released back to the community," said Brett Traver, former EDC director. "Our biggest hope is to have current businesses utilize grants like these to expand their operations and create more jobs."

The budget amendment vote passed 4-0. Magistrate Ray White was absent.

Brad Stacy can be reached at bstacy@themoreheadnews.com or by telephone at 784-4116.

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(c)2014 The Morehead News (Morehead, Ky.)

Visit The Morehead News (Morehead, Ky.) at themoreheadnews.com

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Source: Morehead News, The (KY)


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