Community leaders react to Klausner contract

Discussion

September 14, 2012

Community leaders react to Klausner contract

Second hearing set for Tuesday for commissioners to possibly vote on contract

Bryant Thigpen Suwannee Democrat The Suwannee Democrat Fri Sep 14, 2012, 11:29 AM EDT

Live Oak — On Tuesday, Sept. 18, the Suwannee County Board of County Commissioners will sit down at the table for their second and possibly final hearing for the development agreement contract between Klausner Lumber One, LLC and Suwannee County.  By Florida Statutes, the board must have two public hearings before anyone can sign on the dotted line. During the meeting, an agreement should be reached over the Klausner contract that has left some scratching their heads.  Here’s what public officials had to say about the current draft of the contract.

“I very much want them to come to town, but I also have concerns,” County Commissioner Clyde Fleming told the Democrat. “That’s why I wanted to move forward with the contract.”  The last hearing that was held on this matter was Sept. 4 and the last meeting to discuss the contract was on Sept. 7 when Klausner representatives told the county they needed to come to a consensus by then regarding the contract. That meeting adjourned with no consensus and two commissioners waving welcome signs to the company and two opposing the contract as it stood. One denied to comment. Klausner is looking to construct a state-of-the-art sawmill in western Suwannee County at US 90 West and I-10.

“We need to come together and agree on something that would benefit both parties,” Fleming stated.  When asked about the benefits of Klausner coming to town, Fleming quickly replied, “It will bring jobs. Those jobs will bring more jobs. Then those jobs will bring more jobs, and it just keeps going. It would provide jobs in this county that are very much needed in this tough economy.”

In the contract under company commitments, the second sentence states “The company anticipates that wages for the company’s workforce will average not less than $14 per hour. The company plans to provide health benefits with employees not sharing more than 50 percent of the cost, in accordance with applicable law.”  What many have shared concerns about is the wording of the contract. While Klausner lays out stipulations for the county in fine print, some have noticed key words such as “expects”, “anticipates”, and “plans”.

While County Commissioner Jesse Caruthers is not opposed to discussing the issue, his main concern is that those who have land in the affected area did not have the opportunity to voice their concern.  “The public did not have a chance to voice their opinion,” he said. “Those who are affected by this decision didn’t receive a notice of the hearing until after the (first) hearing was complete.”

On Tuesday, Sept. 4, the first public hearing took place at 10 a.m. And as Caruthers explained, the adjoining property owners did not receive a notice from the county in the mail until Tuesday, Sept. 4 at 11 a.m., since the post office was closed Monday, Sept. 3 due to Labor Day. According to Caruthers, property owners were not notified of the meeting until an hour after it had taken place.

“I don’t feel like due process was given to the public,” he said. Adding to the fact that the notices were not served on time, Caruthers also noted that the notices which were received late did not inform the property owners of the second meeting. Caruthers continued by saying that giving them a notice is “just the right thing to do.” Local political action group Suwannee Progress Vice-President James Cornett said more language is needed in the current draft of the contract that will protect taxpayers.  “Suwannee Progress is hopeful that the county will find a way to bring resolution to the contract issues with Klausner,” said Cornett. “We support economic growth and development in our community and we encourage the county to work to include language in the contract that will protect the taxpayers while allowing the company to get to work.” Bill Graham, attorney hired by the county for the contract negotiations, said that he supports the contract. “I do support the contract with Klausner, in its current form,” Graham said by email Thursday. “And I have stated that the reverter clause is necessary and appropriate.”

The Live Oak City Council met in an emergency meeting on Thursday night, Sept. 6, to sign a resolution in support of the county’s project. Council President Adam Prins said the council also unanimously passed a motion “to be the conduit for a loan through the Rural Revolving Loan Fund from the state to get the money for CSX” so a rail spur could be constructed at the project site.

“It’s the finest thing that could happen for the city, the county and the schools,” City Attorney Erny Sellers told the Democrat. “It’s the best thing that has happened in 30 years.”  When asked about the risks involved with the Klausner contract, he expressed that there is “very, very little risk for the county. But the potential benefits are mind boggling.”

“We haven’t had this opportunity in years, and we never will again [should the commissioners decide to vote against the contract],” he said. “Suwannee County once had the biggest sawmill in the state of Florida, and we have that opportunity once again. Everybody will benefit from this.”

Everybody? Sellers noted that although the county would be giving up its ad valorem tax for 10 years, the local schools would be a key beneficiary from the ad valorem tax, racking up approximately $1 million more per year.  “The hospitals will increase because more people in the county will have health insurance. Tire companies will benefit because of the increased traffic of semis. Young men and women who serve our country and are trained to work on these types of machines will be able to come home and work. Our school systems will be increased. Everybody wins,” said Sellers. “Any commissioner that casts a deciding vote [in favor of the contract] will be making a decision that will benefit this county for decades to come.”

For the second hearing that is approaching next week, advertisements were placed in this newspaper notifying the readers of this important meeting, and letters were sent again to the property owners near where the company plans to build for this Sept. 18 meeting.  County Commissioner Phil Oxendine chose not to comment and commissioners Ivie Fowler and Wesley Wainwright were unavailable for comment.