Atmore IDB executes clean-up actions for facility
Published 9:15 am Wednesday, October 28, 2020
The Atmore Industrial Development Board Oct. 20 authorized the execution of a lease termination and an Alabama quit claim deed during a special-called meeting at city hall.
IDB Boardmembers Richard Maxwell (chairman), Sheilo Faircloth and Ulysses McBride were present for the meeting.
City Attorney Larry Wettermark said the IDB, back in 2000, did a project with Masland Carpets through their subsidiary, Dixie Group Inc.
“The way this typicall works is you give a tax abatement for non-educational ad valorem taxes by Masland through Dixie, and is conveyed through what is now Masland Carpet’s property to the industrial development board,” Wettermark said. “Then, the industrial development board would then give a mortgage on the property back to Masland, and also a promisory note.”
Wettermark said after 10 years, the note was retired, and when the abatement went away, the property is conveyed back to Masland.
“Masland, through subsidiaries through Dixie and TDG, owns everythring in color on the diagram in both blue, red and yellow,” he said.
During the meeting, Wettermark displayed a graphic detailing what Masland Carpet owns. Each sot was marked in red, yellow and blue.
“What’s happened is Masland, thorugh its subsidiaries, is financing all of its proiperties,” he said. “When the title compahy took a look at it, they said we don’t see of record where anybody canceled the note by which we still owed money. We don’t see where the mortgage was canceled.”
Wettermark said the special-called meeting was held to clean up anything that wasn’t completed 10 years ago, and a way to lcean up any problem the board has with the title company.
“This is also important because we need Masland to convey part of the yellow part to put the rail spur in for the peanut facility,” he said. “We can’t do that until we refinance all of the property. After the refinance, the bank releases the uncumbered parts of this.”
The Atmore IDB authorized the chairman to execute the following:
• lease termination confirming that the lease beetween Dixie Group Inc. and the industrial development board has expired and terminated; and,
• to execute Alabama Quit Claim Deed from the industrial development board to TDG Operations LLC.
This action was completed to help Coastal Growers LLC proceed with the construction of the peanut shelling facility, which will be located on some 85 acres of land adjacent to Masland.
At present, land is being prepared for the facility.