Ag center coming up short

Feb 8, 2010 — The Mountaineer

Vicki Hyatt

Feb. 8, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- Harrahs Cherokee Casino

County commissioners learned last Monday the Haywood County Fairgrounds will be unable to make scheduled loan payments of nearly $40,000 this year without help from the county.

Commissioner Kevin Ensley, who is a member of the Haywood County Agriculture and Activities Center governing board, said the county used to give the fairgrounds $50,000 annually to build and maintain facilities on the county-owned land.

Last year, the county suspended payments to nonprofit organizations as part of its budget-cutting measures. Now, Ensley said, the all-volunteer fairgrounds board members can't raise enough money to make the payments.

There is a total debt load of $337,000 on two of the newest structures on the grounds -- the all-purpose arena and the newest building on the lower portion of the property known as the "B" Building.

Last year, fundraising activities and rental fees generated $144,650, an amount inadequate to keep up with expenses.

Ensley said since the buildings are on county property, if the payments aren't made, the situation will fall to the county anyway.

"Volunteers have put a lot of energy every week into getting this where it is today," he said. "It is discouraging if we just abandon it. If we help them with $40,000, it would help them get down the road a little bit further."

Glenn White, the board's treasurer, said the fairground facilities are available for rental eight months of the year. In the past, there was a part-time employee to coordinate rentals and help organize the events. That person had to be let go.

"It is a great venue for livestock exhibits or entertaining," he said. "West of Asheville, there is no equal. But it comes back to being solely done by volunteers. That gets difficult."

Commissioners asked about increasing revenues from rental fees, but White said there are drawbacks.

"Restrooms and a concession area in the B Building would make it more attractive," he said, "but without professional marketing, it won't go anywhere. We need some contact with people who do these events and we need to look at the rental fee structure."

There are four sections of bleachers in the arena, but White said another two sections are needed if the facility's full capacity is to be available.

Commissioner Mark Swanger asked how much it would cost to finish the project. White estimated the price at about $150,000, including $75,000 for bleachers and the remainder for the restroom/concession project, which could be done with help from Haywood Community College students.

"My concern is whether next year we will be having this same conversation," Swanger said.

He asked whether the board had investigated the cost of a USDA Rural Development loan.

White said that was beyond the scope of "volunteer amateurs."

When asked, County Finance Officer Julie Davis said she would be happy to look into the issue, but noted since the organization is a separate entity, any loan application would have to be submitted through its board. Swanger asked that the county approach USDA to get an idea whether such a project would be eligible for the loan. Fairground leaders estimated a $500,000 to $600,000 loan would consolidate the debt and finish the projects that have been started.

"If we got that, it would be payments we could afford and we wouldn't have this conversation next year," Swanger said.

White also suggested the board and the county could work together to help reduce expenses such as the cost of insurance or the audit, both of which are big-ticket items in the annual budget.

Commission Chairman Kirk Kirkpatrick agreed a long-term solution is in order.

"We need to determine if we can get some kind of loan to pay off the debt and finish those items," he said. "If we can, the debt service won't be so great."

Ensley encouraged action to help.

"They wouldn't be here and would have the facilities finished if we had given them the money. That's why the facility is there, because the county helped them," Ensley said.

Sam Smith, a member of the agriculture and activities center board and the administrative assistant, said there were more than 55 different events held at the fairgrounds last year.

"We view it not just as entertainment, but as an economic development component in the county," Smith said in a recent interview. "The larger kinds of events and shows such as WNC Dog Fanciers event brought people in from 30 states and Puerto Rico. There were two national cattle events, the Gelbvieh youth show and convention and Jersey heifer show. One show rented 93 units of a motel for an entire week. The Lions Club horse show brings in people from seven to eight states. This has a real economic impact."

Smith said about 100 vendors show up for the flea markets held the first Saturday of each month, and more frequently if needed.

"That provides supplemental income for local folks," he added.

Both White and Smith said the county fairgrounds is different from the other nonprofit entities which the county stopped funding during rough economic times.

"We were begun under county offices, are located on county property and have a lease with the county," Smith said. "We feel like that puts us in a different category."

In a later interview, White suggested it would make sense to roll the fairgrounds operation into a county department where administrative and marketing help could be offered.

"It's a great facility that is underutilized," he said. "We need paid help, not just volunteers."

Newstex ID: KRTB-0259-41898320