Holmes County commissioners agree to pay half interest on Project Gateway loan, approve $100,000 annual payment to development commission for five years

Holmes County commissioners voted to pay half of the interest tied to the Project Gateway (Busy Bee) property purchase and accepted a proposal from the Holmes County Development Commission for annual payments of $100,000 for five years.

The decision came during a joint meeting between the Holmes County Board of County Commissioners (BOCC) and the Holmes County Development Commission (HCDC). HCDC Executive Director Joe Roan presented a breakdown of interest costs and said the total interest cost on the Project Gateway financing was $577,558.03. Roan said the development commission had been asked whether the county would split that liability: "Y'all sent a letter to us saying that y'all would like to put this behind us if we would pay half of it," he said. The board moved to cover half the interest—$288,007.79—and to revisit a separate, annual payment schedule for the HCDC.

Why it matters: The item resolves a long-running dispute between the two bodies over how revenues and reimbursements tied to the Busy Bee/Project Gateway development should be handled, and it commits county funds on a multi-year schedule that will be revisited annually and formally reconsidered after five years. Commissioners repeatedly flagged limits on county budgeting authority across multi-year commitments and emphasized that any multi-year appropriation would be subject to future boards and annual budget processes.

Most important facts first: The BOCC approved by voice vote to pay $288,007.79 (half of the stated interest total of $577,558.03) to HCDC as repayment of interest-related costs connected to the Project Gateway property purchase. The two boards also agreed that the BOCC would start annual payments of $100,000 to HCDC beginning in fiscal year 2028 (one year after the project opens) and continue those payments for five years, with the amount to be revisited thereafter. The payment schedule is contingent on the project opening; commissioners said the payment would start one year after Busy Bee began operations.

Supporting details and debate: Public commenters and some commissioners pressed for clarity on revenue sources and legal limits. Resident Richard Wilsey raised concerns about transparency and questioned the source of the county funds used for the purchase, noting that FEMA does not make loans. HCDC Vice Chairman Vicky Callahan cautioned against counting gas-tax receipts toward the 5% revenue share referenced in the original development contract, saying, "You can't use 5% on gas revenue because it has to be spent on roads." County staff and commissioners discussed how sales tax and fuel tax revenues are reported and whether those streams can be used to compute a continuing percentage payment to HCDC. Several speakers suggested a flat-dollar approach would be simpler to administer than calculating a rolling percentage of all sales tax revenues generated on the property.

Procedure and limits: County budget staff and commissioners repeatedly said multi-year guarantees are limited by annual budget law. A county official noted that statutory obligations come before discretionary funding and that future boards could change appropriations. Commissioners framed the $100,000-per-year commitment as a good-faith, annually reviewed appropriation rather than a legally irrevocable, perpetual guarantee.

Other actions: The boards also agreed to transfer funds from an investment account to make the interest payment; county officials said the transfer would occur in the next two to three days.

Public comment and context: Several HCDC members and county residents said the compromise would let both entities move forward after a protracted dispute. Former Commissioner Jeff Good urged repair of the relationship between the two boards and called the agreement a step toward joint economic development. HCDC members emphasized the commission's role in securing property rights and in attracting the developer.

What's next: County staff said that if Busy Bee opens in December 2026 as projected, the annual $100,000 payment would begin in the fiscal 2028 budget year and be reconsidered yearly and after five years. Commissioners and HCDC leaders said they will continue to meet and negotiate detailed implementation steps, and the transfer to cover the interest payment was expected within days of the vote.

Ending note: The vote resolves an immediate financing dispute but leaves open future decisions about how the county and HCDC share development revenues; county officials emphasized the need to revisit the commitment in subsequent budgets and to follow statutory limits on multi-year budget commitments.