The memo was included in the agenda packet for information on a public hearing for the closeout of a $1 million Community Development Block Grant to fund water improvements to the development.
Part of the 2005 agreement leading to awarding of the grant was the commitment by the city to create 100 full-time jobs that would benefit from the installed water improvements, the memo from Planning and Development Director Amanda Jarratt said.
That means more than $500,000 of the money must be returned. "Because the job creation requirements were not met, $538,155 of the $1 million award must be returned to the Department of Commerce," the memo said. "Additional extensions from the Department of Commerce cannot be granted."
Of the $1 million awarded, $958,155.12 was spent on construction, planning and administration, the memo said. "At the time of the grant award, the Roanoke Rapids Sanitary District agreed to fund any payback requirement on behalf of the city of Roanoke Rapids if the job creation goals were not met.
"As we proceed through the Community Development Block Grant closeout project process, the city of Roanoke Rapids will coordinate with the Roanoke Rapids Sanitary District regarding the necessary return of grant funds."
No one spoke during the public hearing on the matter, in which council had to approve the de-obligation of the remaining $41,844.88 of the funds.
Councilman Carl Ferbee said following the meeting the city got a couple of extensions. "I hate that it happened. We tried to extend it to get the jobs up. At this point it hasn't worked up to the expectations."
Ferebee said council members, to extent they can, have been encouraging developers and have talked to various agencies about the matter.
The city councilman said he believes the Rapids Jam festival planned for this summer will help. "I think jobs will be created out there.That is the catalyst," he said of the festival. "That will do nothing but help us out."
City Manager Paul Sabiston said city staff will be talking with the sanitary district about the matter and seeing if there are any alternatives to giving the money back, which appears unlikely.
Sabiston said the city encourages developers as much as it can. "We need to make the environment attractive."
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Perhaps Ferebee will explain how a 3 day festival is going to create full-time jobs? They're still caught in their business plan where the bit in the middle says, "And this is where the miracle happens."
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