ST. MATTHEWS -- During a special called meeting Monday, Calhoun County Council passed a resolution and gave first reading to an ordinance concerning the issuance of a $3 million special source revenue bond for the new Starbucks facility.

Michael Kozlarek, bond attorney with the Parker Poe law firm of Columbia, explained that the special session was necessary in order to get the bond application on the agenda of the state Budget and Control Board. The board meets once every other month, he explained, and the deadline for the Jan. 29 session closes on Jan. 8.

"Starbucks is making quite a lot of strides," Kozlarek said. "They're getting the building up."

Council passed a resolution asking the Budget and Control Board to approve the special source revenue bond and then gave first reading to the ordinance to issue the bonds.

Calhoun County has "already approved in theory" the measure, Kozlarek said, and is now being asked to "bless the transaction" according to state law.

The attorney also explained that a special source revenue bond, unlike a general obligation bond, is not an obligation of the county, does not count against the county's debt limit and is not paid off from tax money. The designated special source, in this case, is all or a portion of the fee-in-lieu-of-taxes from the Starbucks project.

"We're anticipating the bond will be paid off in three or four years," he said. "The ordinance permits (the county administrator) to work with the banks to deliver the best rate structure."

Because of the "taxable nature" of the bond, Kozlarek said the interest rate would be at 6 percent or a little higher.

Also, the attorney reported that Starbucks has agreed to provide a guaranteed payment if the project is not completed on time.

"It's fund neutral from the county's perspective," he said.

County Administrator Lee Prickett added that the "project is moving along very well." The projected date to be in the facility is August 2008 and infrastructure at the Calhoun County Interstate 26 Industrial Park is about 90 percent complete, he said. Tri-County Electric Cooperative has contributed some $100,000 to assist with the infrastructure.

In other business, council received n.jpgication that the county will receive a $994,500 Community Enrichment Grant from the state Community Development Block Grant Program. The funds will provide a Quick Jobs Development Center at the new library.

T&D Government Writer Tucker Lyon can be reached at tlyon@timesanddemocrat.com or by calling 803-533-5545.

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