Duplin County eyes major bond savings

KENANSVILLE — A proposal to refinance Duplin County’s 2016 Limited Obligation Bonds topped the agenda at the September Commissioners meeting, with officials approving the first step in a process that could save the county approximately $1.4 million over the remaining life of the bonds.

In a unanimous decision, commissioners authorized Davenport & Company to explore refinancing options for these bonds. If interest rates remain favorable, refinancing could lead to significant savings over the remaining 10-year term. Ty Welford, economic advisor with Davenport, explained that the bonds, originally issued for school projects, can now be refinanced at a lower interest rate. This approval allows the county’s financial advisor to seek better interest rates either in the bank market or through a public bond sale.

Welford emphasized that there is no financial risk to the county because Davenport will not be compensated if the refinancing does not proceed or does not result in favorable terms.

“It checks all the boxes that you would typically want to see as it relates to a potential refinancing,” Welford explained. “We think if we can get an attractive bank rate and a bank bid, it’s going to be a lot more cost-effective and quick for the county to be able to do that and lock in those savings.”

The process is expected to progress swiftly, with results set to be presented to the Board in November, including concrete proposals and savings calculations.

In other business:

• Stella Simpson, who retired after nearly 30 years with the Duplin County Department of Social Services, was honored with a county retiree plaque and the Order of the Long Leaf Pine, one of North Carolina’s highest civilian honors. She was recognized for her decades of dedicated service to the community.

• The board has approved a revision to the performance-based economic development incentive for Project Pair, which involves a $2.3 million expansion of a grain storage facility in Rose Hill. This facility belongs to a long-standing agricultural business and a key employer in Duplin County whose name was withheld for privacy.

The expansion aims to enhance efficiency during the harvest season. The revision reflects an increase in local investment from $30 million to $41 million, which prompted a change in the original incentive terms that had been previously approved. The county will reimburse a portion of the property taxes on the new improvements over a 10-year period: 80% reimbursement for the first five years and 50% for the following five years, contingent upon the investment of at least $41 million and the creation of five new jobs. On average, this amounts to an annual incentive of approximately $154,600, while the county will still net around $83,200 in new annual tax revenue during the incentive period.

According to Scotty Summerlin, Economic Development Director, this project will add critical grain storage capacity, accelerate harvest operations, and reduce costs for farmers in at least seven counties, thereby enhancing agricultural efficiency throughout the region. After the 10-year incentive period, the county will collect full tax revenue, and the agreement includes performance-based clawbacks to safeguard public investment.

• County Planner Chris Hatcher presented plans for the county to apply for Community Development Block Grant – Neighborhood Revitalization (CDBG-NR) funds. This program focuses on housing rehabilitation for low- and moderate-income residents.

“We would request a list of potential candidates from the county, but I would like to note that as of today, we have approximately 24 that we’re going to be in review for this next round of applications. I received 18 about 30 minutes ago,” Hatcher explained, thanking Commissioner Wayne Branch for his role in building the applicant pool, having proactively reached out last year and again before the meeting to provide a detailed list of prospective applicants.

Commissioners also approved a required second public hearing, scheduled for Oct. 6, to advance the application process.

“This is reimbursed, so the county does put that money up front, but we are reimbursed 100% of this. We are currently under two grants, two (CDBG-NR)’s right now. Both of those equaling approximately $950,000 a piece,” said Hatcher. “We have $1.9 million in grant funds, which is amazing, I will say. We are helping a lot of people.”

The board also held a series of public hearings to address road naming requests. After receiving no public opposition, the board approved names for the following new lanes: Walker Estates Drive, Brothers Diaz Boulevard, Oakwood Drive, Maready Farm Lane, and Brenda Gail Lane.