Nearly six months after Montclair’s lease on the Taylor Machine Shop property was up, the oil refining business will be able to purchase the property. The move will bring approximately 50 jobs to Jellico. An additional grant from the state will provide for a Norfolk Southern Railroad Spur on the site, located at 1070 Creekmore Housely Road. The property is part of the Oswego Industrial Park.
“We’re trying to push that process forward now,” said Jellico Mayor Les Stiers.
In January, Campbell County Mayor William Baird applied for an Appalachian Regional Commission grant in order to add the rail spur at the industrial park. The 80/20 grant of $532,660 was approved.
In June, Montclair lost its lease on the Taylor Machine Shop and was unable to secure financing to purchase the property. In a Nov. 29 non-binding letter of intent to Stiers and Baird, Montclair representative Michael Williams was able to lay out plans for purchasing the property.
Jellico will receive $337,000 for the property, with payments made yearly. $85,000 will be paid at closing, $85,000 on the one-year anniversary of closing, $90,000 on the two-year anniversary of closing, and the remaining $77,000 to be paid six months after that. Montclair also reserved the right to pay any or all of the purchase price at any time, according to the letter.
An additional four acres adjacent to the property will also be purchased at $10,000 per acre, payable in a similar fashion. That property will be the home of the rail spur.
“Is the city putting any money into this at all?” asked Alderwoman Pam Carbaugh.
The town was responsible for repairing leaks and installing a fire hydrant, Stiers said.
In order for the town to be eligible for the grant, the land must first be in possession of the entity requesting the grant. In this case, that entity is Campbell County. The motions to deed the four acres to the county, and to accept Williams’ letter of intent passed unanimously with alderman Alvin Evans absent due to recent knee surgery.
“We’re excited about it,” Stiers said.
Montclair’s business could bring up to 50 jobs to Jellico.
“It’s a blessing in disguise that they all the sudden want to buy this building again,” said Stiers.
G Paving was awarded the contract to pave a 400 foot section of Tennessee Avenue in Jellico at a cost of $15,900. A second bid from Wade Faulkner Paving asked for $16,800.
Original estimates were as high as $40,000 to pave the road, but the town of Jellico opted to do the work themselves, saving a substantial amount of money.
“We probably saved, I’m just gonna rough it, 12 to 15 thousand by the city doing the biggest part of the work themselves,” said Alderman Tommy Bowlin.
Paving is slated to begin today.
The town’s 22 employees will see a small change to their insurance at an annual savings of $83,460 to the town.
“The plan that I got back was $5,000 deductible and a 100 percent plan. It’ll really help the city. It’s a great plan, employees will be happy,” said Ronnie Poynter, a representative from CIGNA insurance.
Once employees reach the $5,000 deductible, further treatment will be covered 100 percent with no out-of-pocket expense.
“The drug card is the best they offer,” Poynter said. Medication costs will range from $10 to $50, with $50 being the price of brand name drugs.
Action on roadblocks for 2013 and TML insurance payments was deferred until the regular meeting on Dec. 20.