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Supervisors approve $53,500 repayment plan for Smith Machine Tobacco Commission grant
Summary
County staff explained Smith Machine met 63.5% of promised CapEx and 34% of job targets; the Tobacco Commission requires a $53,500 clawback. The board approved mirrored repayment agreements and authorized signatures.
County staff asked the board to approve two agreements to mirror repayment terms required by the Tobacco Commission after the grant recipient, Smith Machine, failed to meet all metrics.
"Back in 2018, Smith Machine received a trough grant award for their expansion...they still haven't met some of their metrics," the presenter said, explaining the company achieved about 63.5% of promised capital expenditures and 34% of promised job metrics. Because the commission splits metrics, the total clawback due is $53,500.
Staff said the county arranged a repayment agreement between the county and the commission and a mirrored agreement between the county and Smith Machine; the company agreed to make three equal payments. Supervisors moved, seconded and approved both agreements and authorized signatures. A board member expressed relief when staff clarified the county would pass payments through and that taxpayers would not be immediately on the hook unless the company defaulted; staff said the county could pursue repayment through legal action in that event.
