Henry County Fiscal Court disassociates from Economic Development Council, county attorney warns court cannot dissolve separate corporation

Henry County Fiscal Court voted to disassociate itself from the Henry County Economic Development Council, Incorporated, removing county-appointed members and directing the county to give the council notice to cease use of county property, including images and logos.

County Attorney Cassidy Dees told the court the fiscal court cannot dissolve a separate incorporated organization without express authority in its charter or specific enabling legislation, and recommended the court avoid public comment while the matter is unresolved. "Fiscal court cannot dissolve an organization that is a separate entity from the fiscal court," Dees said, adding that the court may instead disassociate by resolution and cease providing property or monetary support.

The action follows months of internal disputes over the council's governance and funding. Magistrates debated a prior motion from last month to dismantle or modify the council. At one point a motion to rescind the court's earlier action related to the council was raised, and the court discussed the procedural requirement for a two-thirds vote to rescind prior action without advance notice. Rather than rescind, the court later approved a separate motion to withdraw its appointees and to place the council on notice to stop using county property; that motion carried.

During the debate magistrates and members of the public voiced frustration with how the earlier motion was handled and with perceived secrecy among some members. Several magistrates urged the economic development committee and the council to use the next six months to rectify governance and operational concerns; Cassidy Dees said the fiscal court may also create a new county-controlled entity under KRS 67.083 if magistrates choose to do so.

The court's action does not dissolve the EDC's corporate existence. Dees said the council would need to follow its own articles of incorporation and bylaws, or state law procedures, to dissolve. She also advised the court that it may discontinue funding and remove county appointees, which would leave the council to operate independently or rely on private and municipal support.

Court members said they will consider options, including forming a new county-controlled committee to handle economic development, but deferred any final plan to a future meeting so the economic development committee and magistrates can meet and prepare recommendations.

The motion carried; the transcript does not record a roll-call vote tally in the meeting minutes.

Looking ahead, magistrates discussed giving the EDC six months to address governance problems and said the court will consider next steps — including possible creation of a new county economic development entity — at a later meeting.