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Statesboro staff seek approval to finalize termination with Aspen Air Jail; company to repay EIP grant draws
Summary
City staff told the council that Aspen Air Jail has agreed to repay $741,000 plus roughly $11,000 in grant-preparation costs after the company withdrew from a project tied to a $750,000 EIP grant; council discussion noted remaining infrastructure and protections for future developers.
City staff asked the Statesboro City Council to finalize a termination agreement with Aspen Air Jail after the company announced it would not proceed with a local project that had been tied to an Employment Incentive Program (EIP) grant.
A city staff member said the city received a $750,000 EIP grant to support infrastructure to a plant; the cost to install the infrastructure exceeded the grant amount. The presenter said Aspen Air Jail will repay $741,000 — the amount the city has already drawn from the grant — plus about $11,000 to cover grant preparation and consulting expenses. The city intends to return those funds to the Georgia Department of Community Affairs (DCA) to avoid jeopardizing eligibility for other grants, the presenter said.
Council members discussed the fact that the infrastructure installed for the aborted project remains in place and that a future developer could benefit from that work. One council member praised the development authority and city attorneys for contract protections and said the authority "work[s] really hard to make sure that they're protecting us." The presenter said finalizing the termination agreement will allow the city to transfer repaid funds back to DCA.
The council did not announce additional funding actions at the meeting beyond authorizing staff to finalize the termination agreement and related transfers. Staff indicated they would execute the electronic transfer of the repaid funds and then remit them to the state agency.
