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KENANSVILLE — During the March meeting of the Duplin County Board of Commissioners, one of the key items focused on a proposed $200,000 loan from the county’s revolving loan fund to support a project by Villari Food Group LLC in Warsaw.
The loan request was presented by Economic Development Director Scotty Summerlin during a public hearing. The funding would help finance a $3.27 million project aimed at improving the company’s wastewater pretreatment system before its discharge enters the Town of Warsaw’s wastewater treatment plant. The project includes two phases: installing upgraded pretreatment equipment and developing a land application system to manage processed wastewater more effectively. The improvements are intended to reduce the burden on the town’s treatment facility and address past challenges with wastewater discharge.
“The project demonstrates the company’s strong desire to address their treatment deficiencies and challenges,” said Summerlin.
He noted that the revolving loan fund has existed for about 40 years and was originally created using Community Development Block Grant funds, meaning local tax dollars were not used to establish it. Loan applications are reviewed by a committee consisting of a county commissioner, a business owner, a certified public accountant and a banking professional. After reviewing Villari’s proposal, the committee recommended approval of the loan under terms including a 10-year repayment period and an interest rate based on the U.S. prime rate of 6.75%, with no deferred payments or early-payment penalties.
During discussion, Summerlin emphasized that the funding would support both repairs and improvements to address existing wastewater issues. Chairman Dexter Edwards, who sits on the committee, said he initially “was very concerned” when the proposal was first presented and wanted to ensure the project would not negatively affect the Town of Warsaw financially.
“I asked a question to make sure it was not going to be a loss of income for the town of Warsaw,” he said. “It does appear to me this is gonna be a benefit to Warsaw. It’s gonna free up some sewer opportunities for Warsaw, and I’m very much believing that this is going to help the citizens of Warsaw, not just Villari.”
Edwards explained that the improvements would reduce solids and other materials entering the treatment system, lowering operational strain and costs for the facility. In addition, the upgrades could free up capacity in the town’s wastewater system, potentially allowing for future growth and development.
Commissioners Jesse Dowe and Wayne Branch raised questions about whether town leaders had been consulted and whether the project could affect Warsaw’s treatment capacity or finances. In response, Summerlin said he was not aware whether Villari had presented the project to the Warsaw Town Board but said he had spoken with the Warsaw town manager.
Summerlin described the project as a way to protect existing employment while supporting long-term economic growth in the community. He explained that expected outcomes of the project include the ability for the company to grow in Duplin County, protect 1,000 existing jobs, and create 75 new jobs.
“Villari cannot grow without the project,” said Summerlin.
Several commissioners expressed that the project appeared to be a “win-win” situation for both the company and the town of Warsaw. They noted that the company had demonstrated a willingness to invest millions of dollars in infrastructure improvements and address environmental concerns. After discussion, the board voted unanimously to approve the loan request, allowing the project to move forward with county support.
