Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Economic Development topic
No spam. Unsubscribe anytime.
Board approves repayment agreements for Smith Machine grant shortfalls
Summary
Smyth County supervisors approved mirrored repayment agreements to pass a $53,500 clawback from Smith Machine through the county to the Tobacco Commission, with the company agreeing to three equal payments and the county reserving legal recourse if the company defaults.
Smyth County supervisors approved two repayment agreements on the Smith Machine grant that together cover a $53,500 clawback from the Tobacco Commission. County staff told the board Smith Machine met 63.5% of its capital-expenditure metric and 34% of its jobs metric under a 2018 grant award, producing the repayment obligation. "They have agreed to that, and I have 2 agreements," a staff member explained while asking the board to authorize signature on both documents (speaker 10).
Members pressed staff on risk to taxpayers and the county's recourse if the company fails to pay. Supervisor Billings said he was initially "very upset when I thought Smith County taxpayers was on the hook for something like that" but acknowledged staff's explanation that the county would file suit to recover funds if the company defaulted (speaker 11). Staff clarified the county's role is to pass payments through to the commission, not to absorb the clawback unless the company defaults. The board approved the agreements and authorized signatures by unanimous voice vote.
