Magnolia releases old revitalization grant funding back to state

MAGNOLIA — Last week, members of the Magnolia town board discussed funding for the Magnolia gymnasium project during their regular monthly meeting.

Town Manager Charles Banks provided an update and passed along the grant administrator’s recommendations about returning the funds to the state.

Banks explained that the grant was awarded in 2018 for disaster relief as part of a revitalization effort. The original project involved revitalizing houses and the auditorium of the old Magnolia High School campus. The auditorium had suffered severe damage from Hurricane Matthew, compromising its roof and windows and exposing the interior to the elements. According to county documents, insurance claims were insufficient to cover the necessary repairs after the storm, which led to the deterioration of the auditorium. Ultimately, it was deemed a threat to public safety and was demolished to allow the adjacent recreational fields to reopen. When the auditorium was deemed unrepairable, the revitalization project shifted to redirect funds toward the construction of a gymnasium instead.

Banks noted that the grant initially provided $750,000 for revitalization, some funding went to administrative costs, and $180,000 went to revitalizing homes in the community. As a result, $569,000 remained available for the gym project. However, after consulting with the grant administrator, he determined that the town would not have enough time to meet all the requirements by the September deadline for the grant.

“There is a hard deadline of September 2025 by The U.S. Treasury, which I understand cannot be extended,” said Banks, explaining that the work should have started in the fall of 2022 or 2023 in order to meet the required deadlines. He shared that the grant administrator suggested evaluating the process needed and the financial risk to the town.

Banks determined that the best course of action is to return the funds to the state and reapply for a new grant cycle that will allow them to move forward with the project in the future.

Mayor Dawn Ward explained to the public that this was a reimbursable grant with funds reserved for Magnolia that they are releasing back to the state. “They’re no longer reserved on our behalf because we can’t meet the timeline,” she explained.

Banks said they will aim for a sizable grant, like other towns.

“There’s been some significant moves in the last month. Beulaville, Rose Hill and Duplin County received substantial grants, around $950,000 a piece for this same exact funding,” said Banks. “And we will have a fresh seven years that we can actually use.”

Banks explained that grantees are given a seven-year period because it is a lengthy process.

“It takes that seven years just, unfortunately, for a lot of governmental red tape that we go through because it’s going to be a year and a half to get the environmental processes done and stuff before we can start bidding things out,” Banks explained.

Another key highlight of the meeting was a discussion about animal control.

Magnolia Police Chief Jerry T. Wood addressed the challenges the town is experiencing, highlighting issues with outdated ordinances and the lack of adequate animal control services.

He shared that while there is no official word, it was estimated that the towns would pay approximately $30,000 annually to the county to cover the cost of having county animal control extend its services into the towns. He added that as a more affordable solution, the town considered hiring an independent contractor for specific animal control needs, costing around $250 per incident.

The town is also considering revising its animal control ordinance to better address these issues. They also discussed having a public hearing to involve the public and get community feedback to ensure it reflects the residents’ concerns and needs.

In other business:

• A resolution of intent to close an undeveloped portion of Dogwood Drive was approved. The next step will be to send certified letters to all the property owners and conduct a public hearing to give everyone the opportunity to speak before the board decides whether or not they believe it’s in the best interest of the town to close the street.

• The board approved the budget calendar. A few highlights include a public meeting scheduled for Feb. 25 where residents can provide input on what they’re looking to see in the town so it can be considered. The planning retreat will be on March 6 at the Duplin County Airport. On May 27 there will be a public hearing to present the FY 25-26 budget to the public and on June 10, the town will conduct a budget hearing and adoption.

• Commissioner Eric Graham read a proclamation in observance of Black History Month honoring the achievements and contributions of African Americans.

• The town board appointed Jessica Melton and Tisha Terrell for a two-year term and Pamela Faison for a three-year term to the town of Magnolia Planning Board.

The next meeting will be on March 11.