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Board hears that River Street nonprofit is filing bankruptcy; ARPA repayment and broadband alternatives discussed
Summary
Supervisors heard that River Street may be filing for bankruptcy and that state/federal clawback of grant funds is possible; county staff will meet state officials to clarify whether ARPA funds can be recovered or reassigned and discussed alternatives including Starlink installations for residents.
County staff alerted the board that River Street, a nonprofit that received county and regional funding, is expected to file for bankruptcy and that state and federal authorities may seek to reclaim grant funds. A staff report and a letter in the board's packet prompted immediate discussion about recovery of local ARPA funds and next steps.
Speakers said the county contributed roughly $725,000 to River Street about three years earlier as part of a multi-county effort; speakers said seven other counties were involved. The board directed staff to meet with state officials the next day to discuss options, including whether Western Piedmont or other regional procurement could be used to reprocure services on a county-by-county basis, or whether the county must pursue its own procurement and local match requirements. Several supervisors expressed skepticism that the $700,000-plus referred to in the discussion had not yet been spent, and said they expect the state meeting to provide clarity.
Because ARPA-funded projects generally must be obligated by a December 31 deadline, staff explained the county may need to either obligate funds to a substitute project or request an extension. Board members discussed substitute projects and limitations: substitute projects must be in the same programmatic vein and typically must have been obligated by the deadline to qualify; procurement timing and contractor availability make meeting the obligation challenging. One supervisor suggested encouraging citizens to sign up for Starlink service and using ARPA funds to cover installation costs as a potential substitute broadband strategy, but staff cautioned procurement rules and timing could prevent quick implementation.
The board will receive an update after staff meets with state contacts; no formal vote was taken. Supervisors asked staff to explore whether ARPA funds could be recaptured, whether substitute projects could be obligated in time, and how procurement rules would affect options.
