Will pay $600,000 to secure debt
Elaine Blaisdell Cumberland Times-News
2012 — OAKLAND — On Tuesday, Garrett County commissioners voted unanimously to take ownership of Adventure Sports Center International and authorized the expenditure of $600,000 to secure the assignment of ASCI debts from Susquehanna Bank.
“We have basically changed the assignment of debt as of today. So the debt is really a repayment to the county,” said Chairman James Raley.
Susquehanna Bank will split the debt and distribute half to First United Bank & Trust, according to Commissioner Gregan Crawford.
“As part of that process, ASCI’s principal financial partners, First United Bank & Trust and Susquehanna Bank, proposed and offered a significant debt re-duction opportunity to the county in the event that the county accepted ASCI’s offer,” said Crawford. “The financial partners, who have contributed significantly to the process and the county’s consideration of this matter, have agreed to accept the assignment of debt in the sum of $600,000 in full satisfaction of ASCI’s debt obligations to those financial institutions.”
The $600,000 debt from ASCI will be paid with hotel/ motel accommodations tax revenue, according to Crawford.
The money for the debt came out of the general account to pay the banks, with the amortization coming out of the accommodations tax, according to Raley.
The accommodations tax is used to fund the Chamber of Commerce and Economic Development, according to Crawford.
“Accommodations tax can not be used to fund the school system,” said Crawford. “Once this debt is resolved, ASCI can concentrate more of its resources on fulfilling its corps functions. As public funds were used, we have a responsibility to succeed. The easy way out would to turn our backs, walk away and watch $24 million in capital costs go away. Whose interest will that serve then.”
A bill that is currently in consideration in Annapolis would raise the accommodations tax from 5 percent to 6 percent, according to Raley.
“That bill has progressed and gotten favorable readings from Senate side and the House side,” said Crawford.
ASCI is a nonprofit and is home to a manmade whitewater course and Forks Run, a 550-acre recreation area. The original debt accrued by ASCI was $3 million.
“We can not allow ourselves to give up this project,” said Raley. “I think this project is still in its infancy. I think we can grow this project and I think if you work with us we can make that happen.”
On Jan. 5, the board of directors of ASCI offered the full title to the facilities to the commissioners. The commission has been deliberating this matter since then, according to Crawford.
“The county has reviewed all information concerning the ASCI’s facilities, including its assets, liabilities, long-term value to county and community and has consulted with ASCI’s financial partners,” said Crawford. “The taxpayers of this county, the state, the federal government have made significant investments in this property.”
The $17.7 million project was built with $6.1 million from the county, $5.8 million from the state and $2.6 million in federal funds, according to The Associated Press.
Before the public had a chance to ask the commissioners questions, Raley noted that he understood their concern over the county’s decision to assume ownership of ASCI.
“I do believe it has its best chance of success under the current setup,” said Raley. “It’s not done. We still have some work to do after today. But I want you to note they have been open discussions to the extent that they can be. I have read your emails. I have read your social media posts and I do understand what you are saying.”
Negotiations would have to be handled in executive session, according to Raley.
The majority of the business owners and residents that spoke at the press conference had a variety of questions and some made it clear they were not happy with the decision.
“I just think this is a bad decision. It’s going to put us in a mess for years,” said Mountain Lake Park Mayor Leo Martin.
Martin noted that he didn’t fully understand where the $600,000 was coming from.
“That $600,000 is going to push something out of the budget sometime,” said Martin. “It has to, unless you are going to raise taxes. It’s the tax payers financing all of this. I think you guys need to speak in clear language about that.”
Raley reiterated that it was coming from the accommodations tax.
“The accommodations tax is up this year compared to other years. It has been another record year,” said Raley.
One resident questioned whether the general funds that are being used to pay the debt are taken from taxpayer money. Raley agreed that the general fund contained taxpayer money.
“We are using our funds (out of the general fund) to fund the payoff from the bank,” said Raley in response. “We are not borrowing money from the bank or paying the bank’s interest. We are using our own funds and they will be repaid,” said Raley, noting that it was a one time expenditure.
Raley encouraged residents to keep faith.
“I encourage you don’t give up. Think positive,” said Raley. “Roll up your sleeves like you do here in Garrett County. Let’s make it happen because we own it. It’s part of the Garrett County economic picture and the project is somewhat of the envy of many other places.”
Contact Elaine Blaisdell at eblaisdell@times-news.com
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