I.H.C., City Council meets - KY Copper debt discussed

Fri, 12/26/2014 - 3:18pm — Diane Dyer

Councilmen Gary Southerland, Terrell House and Allen Meredith.

The city of Morgantown's Industrial Holding Corporation (I.H.C.) met Monday night, December 22, in a called meeting at the Eva J. Hawes Community Building. The I.H.C, which consists of the members of the Morgantown City Council, approved the minutes from the November 13, 2014 meeting. Next, they discussed liability insurance for the I.H.C. board.
“We haven’t had any liability insurance for the I.H.C. board,” said Mayor Linda Keown.
The council approved the purchase of liability insurance for the I.H.C. board at the cost of $1,679.70 per year.
The final item on the agenda was approval of the transfer of $50,000 from the City of Morgantown to the I.H.C. The motion prompted a discussion of the I.H.C. debt.

Industrial Holding Corporation Debt Balances as of December 19, 2014

	Beginning Balance	Present Balance
MB&T – KY Copper Building	$1,300,000.00	$985,832.31
MB&T- Clifford White Property	$50,140.00	$39,498.15
MB&T- Pride Plastics	$260,000.00	$134,038.90
Chad Bratcher-Osco Bratcher Repayment	$168,750.00	$126,499.87
Don & Diana Ray Repayment	$56,250.00	$42,154.62
TVA – KY Copper	$750,000.00	$504,541.00
Exie Hawes- No payment yet	$65,000.00	$65,000.00
TOTAL	$2,650,140.00	$1,897,564.85

Much discussion centered on Kentucky Copper and its financial difficulties and how they may impact the city of Morgantown.

Debt Owed to the City of Morgantown IHC from Kentucky Copper:
1.    Rent: $ 9,988.22 per month (May thru August 2014) = $39,952.88
2.    Administrative Fee: $150 per month X 4 months = $600.00
3.    TVA Payment : $7,298.98 per month (May thru November 2014) = $51,092.86
4.    CDBG Repayment: May-July Interest only $2606.30 per month + Aug-Dec interest & principal $23,372.26 per month for a total of $124,680.20
GRAND TOTAL DUE TO CITY FROM KY COPPER: $217,584.90

According to Mayor Linda Keown, Kentucky Copper has until December 31, 2014 to make a payment.

"We are at a stand still till after the deadline. We have not heard from Kentucky Copper and our attorney has sent the proper paperwork to Kentucky Copper," said Keown.

***

Following the IHC meeting the Morgantown City Council had a called meeting. With all members present they approved the following:
• 1st Reading of 2nd Amended Budget 2014-15: reflecting the $50,000 transfer to the IHC
• 2nd Reading of the Nuisance/Blighted Property Ordinance 2014-14: This passed on a 5-1 vote with Dionne Merritt voting nay.
Merritt stated that she voted against the ordinance because of her concern with a statement about recurring noise levels.
“I just want to make sure we don’t put concerts or special events in violation of the ordinance,” said Merritt.

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