Grayson County Economic Development Authority staff warned the board on June 26 of a potential repayment demand from the tobacco commission tied to workforce data for grant-funded projects.

Staff said the commission previously identified a larger figure (the transcript references an earlier $307,000 figure) and that subsequent review narrowed the potential amount to about $167,000. The EDA has submitted workforce data covering 2022 through June 2024 and said tobacco staff requested more precise documentation; staff has provided the requested data and described the matter as in the commission’s review process.

Staff said the commission issued a deadline related to final documentation and that the board should expect a decision cycle with a material date of Sept. 25. Board members discussed scenarios, including whether tobacco might withhold funds or seek repayment and whether county or EDA coffers would absorb any required payback. Staff said previous practice sometimes allowed partial adjustments, but that commission policy has tightened in recent years, increasing the risk of repayment.

Staff and board members identified internal and external contacts (the CEO Paul Mallory, Jordan Butler, and others were named as contacts or prior points of engagement) and said they would pursue follow-up with the tobacco commission and partner jurisdictions. No formal action was taken at the meeting to authorize repayment; staff said they would return with options if the commission issues a repayment demand.

Board members asked whether a negotiated solution could require the company to remain at the site in exchange for debt forgiveness; staff said the EDA cannot force a company to stay but could explore negotiated outcomes with the company and commission.

The discussion did not include a formal vote and did not record a final sum that the county would pay; staff emphasized the numbers were under review and that further specificity would come from the tobacco commission.