As Roanoke Rapids City Attorney Geoffrey Davis discussed unpaid taxes on the theater Tuesday night, Councilman Wayne Smith received a text message from Tom McLean saying the taxes were paid earlier that day.
The payment of the late city and county taxes won’t mean a change in the loan maturity date, said Davis, who still plans to meet with McLean to discuss the matter.
About 9 minutes into his presentation Davis said he just received information from Smith that G&T Holdings had paid the taxes. “That doesn’t necessarily in my opinion change the maturity date on the last extension,” Davis said. “The maturity date has already come and gone so I will still ask for us to move forward tonight given the fact I haven’t verified it tonight. I don’t think it changes the situation we’re in.”
A little more than a minute later City Manager Kelly Traynham showed Davis the information from the tax office which confirmed the payment had been made.
But Davis said he would still ask the council for authority to speak with McClean about the matter. The attorney’s only other proposal would be to defer action until the next regular meeting.
He assured the council that after that meeting is held, “Whatever they would present to me, even if it’s something I would not authorize the council to enter, I would report it back. I have a duty to do that.”
Tuesday’s special meeting was for the purpose of discussing the theater loan agreement as well as for council to go into closed session to discuss a legal matter.
The issue regarding the theater was discussed in open session as has been council’s policy.
Smith, who has pushed for theater deliberations to be in open session, said this morning of the payment, “It makes me feel better — it really does. I was hoping he would pay before the deadline. Tom has tried to stand by most of the agreements he has made.”
Halifax County Tax Office records show on Tuesday McLean paid the original taxes due in the amount of $97,062.79.
The building, which sits on 8.82 acres of land, currently has a value of $4,918,500 with a land value of $885,800. It has a personal value of $60,115 for a total taxable value of $5,864,415.
Before information on the payment was disclosed, Davis said the original promissory note with G&T Holdings was entered into in July of 2018. “Since that time there have been four modifications done to that.”
The last modification was approved last January. As of the last modification the maturity date of the note changed from January 15 of last year to this January 15. “What the maturity means is that the balloon payment which would have been due should have been paid,” Davis said.
If G&T Holdings had paid the city and county in full by January 15 the maturity date would have automatically been extended to May of this year. “That was not done so as of today they have not paid the taxes on the theater property. That technically makes them in default of this agreement.”
In discussing the options the city has, Davis said, “We can’t sit and do nothing.”
The first option, he said, was to work out some type of loan modification. “At this point we’re talking about a maturity date that has been extended four times since the original agreement was entered into in 2018. I’m going to suggest that’s probably not the best option.”
Davis asked the council for authority to communicate to G&T they were in default and to give them until the second Friday in February to remedy the default.
Davis said he had discussions with McClean at the end of last week and informed him about the special meeting.
Carl Ferebee made the motion for Davis to enter discussions with McClean and Rex Stainback cast the second. The motion passed unanimously.
