The Alamance County Board of Commissioners turned down Lotus Bakeries third request for incentives since 2016 in a split vote Monday.
“I am concerned this is the third time,” said Commissioner Pam Thompson. “Is there going to be a fourth?”
Commissioner Craig Turner was recused because he and his law firm have represented Lotus in the past. So when Thompson and Commissioner Bill Lashley voted no, tying with Commissioners Steve Carter and John Paisley voting yes, the motion to approve a new package of $600,000 in county incentives failed.
“As a biz person I would suggest to you – don’t do it; you can stand on you’re own two feet; you don’t need our taxpayers’ money,” said Commissioner Bill Lashley. “I wish I could vote for this, but I cannot vote for incentives.”
Premiums, as Commissioner Bill Lashley said several times, are not free money. They have to be paid back. But, when Commissioner Steve Carter called them interest-free money, Lashley, who has a background in finance, said “pretty much.”
It’s a little complicated. Voters approved just $189.6 million in borrowing, but that vote also approved paying interest. Interest rates vary, so their cost won’t be known until they are locked in.
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The county projected a 5% interest rate when calculating how much it would be paying on those bonds. But unless something very surprising happens, when ABSS issues its bonds April 20, the rate will be much lower than 5%. The peculiarities of the municipal bond market mean investors can bid more than the face value of those bonds, which could potentially bid up their value by $20 million or more. That would mean the county could borrow $174 million instead of $150 million and ac
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