Supervisors approve $53,500 repayment agreement with Smith Machine
Summary
County staff said Smith Machine met 63.5% of promised capital expenditures and 34% of promised job targets; the Tobacco Commission clawback of $53,500 will be repaid under two mirror agreements (county↔commission; county↔company) with three equal payments, approved unanimously.
County staff presented and the board approved two mirror repayment agreements tied to a prior Tobacco Commission grant awarded to Smith Machine.
Staff (S10) told the board that Smith Machine received a grant in 2018 for facility expansion, received funds upfront, has since had several extensions and now falls short of some contract metrics — roughly 63.5% of capital expenditures and 34% of promised job metrics — producing a total clawback of $53,500. S10 said the county and commission have agreed on a repayment schedule and the company has signed an agreement to make three equal payments; the county will pass payments through to the commission. A motion to approve both agreements and authorize signatures passed unanimously.
Board members asked what would happen if the company defaulted; S10 said a county payment could become necessary and the county could then pursue legal repayment from the company. Supervisor Billings (S11) said he was initially concerned about county liability but accepted the explanation that the agreements mirror commission requirements and the county’s administrative burden is reduced under newer grant processes.
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