During a special-called meeting on Monday, Harlan County Industrial Development Chairman Harry Gibson updated the board members on the findings regarding a $460,000 debt the Harlan County Fiscal Court said they owed.
The debt originated from 2006 when the Kingdom Come IDA defaulted on a loan and Kingdom Come State Park was foreclosed on. The KCIDA dissolved and the fiscal court paid to have the park taken out of foreclosure. According to Gibson, the payments were made by the fiscal court with an initial payment of $50,000 from the state to get the property out of foreclosure. He said the $460,000 debt was from a 2010 audit in which the auditors figured up the total number of payments the court would make to completely pay off the debt.
Gibson said the IDA paid the debt off last year with a payment of almost $90,000, which negated the interest the court would pay over a three-year period, so by his calculations the total was around $360,000 instead of the original debt. With the $50,000 from the state taken off that debt, the total came to $303,712.11 the IDA owed the fiscal court.
The IDA voted and agreed to pay the $303,712.11 in good faith to the fiscal court and abstained any further litigation in the matter, so the county can move forward and not waste anymore of the taxpayers’ money in litigation. They also agreed that when they had an audit performed they would revisit the debt and decide if any further money should be paid to the fiscal court to settle the debt. Gibson said the decision to pay the debt was “for the good of the county.” He said the IDA only wishes to be responsible with the taxpayers’ money and use it to benefit the county and keep people working.
Reach Bradley at 606-909-4146 or on Twitter @bradley_HDE