Newspapers / The Brunswick Beacon (Shallotte, … / July 14, 1994, edition 1 / Page 8
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State Could Scuttle Calabash Sewer Purchase BY ERIC CARLSON Billy Burnett, the Carolina Shores sewer system owner who wants the Town of Calabash to buy his utility company, suggested to the town commissioners on Tuesday that they try to work around a state law that might prohibit the purchase. Town attorney Michael Ramos warned the board at its regular meet ing that the N.C. Local Government Commission (LGC) is unlikely to approve the deal if the town goes along with Burnett's insistence that his $4 5 million asking price applies Cmiy to tnv puiviussc of Carolina Blvthe Utility Co. stock and not just for the treatment plant and sewer lines Ramos said a LGC official told him "There is no way you can buy the stock of Carolina Biythe Utility" because state law sets strict limits on the t\-pe of investments a town can make He suggested that the town find out for sure whether it can legally meet Burnett's purchase de mands before spending any more mone\ on negotiating the sale. Burnett told the board he would not sell the company's fixed assets unless the town comes up with enough up-front cash to pay the fed eral taxes he would incur by selling the facilities instead of his corpora tion. He said such a sale would add "hundreds of thousands or maybe millions" to the price and "is not go ing to be fair to the customers." He suggested that the commis sioners use their influence to get state officials to approve the stock purchase. "So what you're going to do is let state law stand in the way of some thing that's in the best interest of the town?" Burnett said. "I think they will find a way to let you do it." The town's accountant Johnnie Britt estimated that if Calabash in cluded enough cash to pay Burnett's taxes, it would add S2 million to the purchase price. He said the increase would boost the proposed water cus tomer user fees from the target rate of $36 per month to $50 a month. Carolina Blythe customers currently pay about $20 for water and sewer service each month, he said. Burnett also said that if Calabash agreed to buy only the fixed assets of Carolina Blythe. the town would have to put enough money into an escrow account for him "to get back in business" if the town defaults on the purchase agreement and gives the utility back to him. "The lx>ttom line is, either way you get the same utility, so you should find another way," Burnett urged the board. "I don't think gov ernment is in business to hurt small towns. If you make an all-out effort, you can do it." Ramos said that even if board members lobbied for special consid eration. it would require local legis lation by the N.C. General Assembly to exempt Calabash from the state law governing stock pur chases by municipalities. He said the town would have to wait until the next legislative session a year from now to introduce such a bill. While he could not say for sure that the stock purchase would be prohibited. Ramos said the LGC lawyer he spoke to "was adamant" that the only collateral permitted for such a purchase would be actual items of value such as the sewer plant, property and transmission lines. "There was a firmness in that man's voice," Ramos said. "I don't think there was any doubt in his mind and he's the one who's going to have to approve it. I don't know what kind of political pressure you can bring to bear. But these arc bu reaucrats who follow the statutes pretty closely. Their purpose is to see that towns don't take on more than they can handle." Board members briefly discussed the possibility of issuing bonds to pay the estimated $6.5 million it would take to meet Burnett's re quirements for buying Carolina Blythe's assets. "If we decided to purchase it the other way (instead of letting Burnett finance the sale), it would have to be through revenue bonds," said Mayor Pro Tern Jon Sanborn. "I don't think anyone on this board would vote for general obligation bonds. Which means we would go out on the open market with a zero credit rating." Commissioner Robert Noe also expressed doubts about the prospect of financing the purchase through bonds. "I think you've really got a can of worms here if you go to bonding." he said. "Unless we can clarify this one issue. I don't know how far we should go on with it." The board asked Ramos to contin ue researching the issue through the LGC, the N.C. Institute of Government and the City of Charlotte. The city council there bought a sewerage system from Burnett by purchasing its fixed as sets and paying him for his tax lia bility. In a related matter the board vot ed 4-to-2, with commissioners Forrest King and Keith Hardee dis senting to approve a plan for pre liminary work on the Carolina Blythe purchase. Leisey Resigns Seven months into his first term of office. Calabash Commissioner Alvin Lcisey submitted his letter of resignation from the town board last week, citing "personal and private" concerns that would not aiiow him enough time to serve on the board. An outspoken District 2 represen tative who sometimes found himself at odds with the Carolina Shores neighbors who asked him to run for office. Lcisey said political pres sures "had nothing to do" with his leaving. Leisey said Tuesday that he en joyed serving the town, but wanted to have more time for other pursuits. He and his wife Mary Helen are planning a trip to Alaska late this month. Hearing On Long Bay Zoning Planned For July 1 9 Sunset Beach Town Council will hold a called special meeting Tues day. July 19. so that it can speed the process of zoning four lots near South Brunswick Islands postal sta tion. A public hearing will be held at 10 a.m. at the town hall on the Sunset Beach Planning Board's rec ommendation to council that lots 14 through 1 7 of Long Bay subdivision be zoned mainland business (MB-1). They are situated between the post office and Benton Realty. The special meeting was prompt ed after an inquiry was made July 1 regarding a building permit for one of the lots. The lots are part of a tract annexed by the town but not yet zoned. The planning board also recom mended that, if possible, the town place a moratorium on the issuance of building permits for the four lots until they are zoned, and that a pub lic hearing be held at "the rariicst possible time." Sunset Beach Council members could act on the zoning recommen dation Tuesday following the public hearing. At the July 19 meeting, council members will also consider a pro posal to eliminate public parking along the western right-of-way of N.C. 179 just north of where N.C. 179 turns as Shoreline Drive West and Sunset Boulevard (S.R. 1172) continues over the Atlantic Intrac oastal Waterway to the island. A miniature goif coursc In being con structed near the intersection and town officials are concerned road side parking near the intersection could create a traffic hazard once the business opens. Town Administrator Linda Flucgel said the proposed "no park ing" area will not include the right of-way section across from Bill's Seafood and Crabby Oddwaters cur rently used by patrons and delivery trucks. Before it becomes effective the new ordinance will require adoption of a similar ordinance by the N.C. Department of Transportation and erection of "No Parking" signs. Council will also discuss disposi tion of surplus vehicles and other property; appointments to the plan ning board as the terms of Richard Good and Sky Bramlcy soon end; authorization of the mayor iu sign documents relating to the exchange of town hall properties between Sea Trail Corporation and the town; and two amendments to the zoning ordi nance proposed by the planning board. The board is recommending council amend the ordinance to pro vide that where public water and sewer are not available for extension to each lot in a subdivision that a statement from a state-licensed pro CALL US FOR INSURANCE QUOTES: 1-800-424-0115 ? Home ? Auto ? Commercial ? Mobile Home ? Life First Investors FINANCIAL CORPORATION Or Visit Our Banking Offices: LELAND (910)371-1000 SHAUOTTE (910)754-5400 WHITEVILLE (910)642-8183 t>c wmawwcw iaconI Roses are red... violets are blue, you deserve a PURPLE HEART ve for been 20 Years With Big Nell what through 7-14-74 to 7-14 % and they said it wouldn't last! Love you. Big Nell fessional engineer accompany the preliminary plal on submission, in dicating that the iui has aJctjiioiC land area and suitable topography to accommodate the proposed methods of water supply and/or sewage dis posal. The current ordinance re quires such a statement from the Brunswick County Health Depart ment. The planning board is already rec ommending deletion of a portion of the zoning ordinance that requires specific permission of the town be fore "altering or relocating" natural vegetation on the beach, including the pruning of beach shrubbery on someone's lot when it blocks a view of the beach. AiaOuiCr section that dCaiS With filling, grading and excavation in cludes similar protective measures for sand, dunes and vegetation. While it doesn't address alteration, it prohibits removal of natural vegeta tion. SUNSET BEACH FUG OR BANNER good times at (he beacfi Old Glory Rags, Inc. 7198 Uaikar R, SW. 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Coldest beverages in town Frosted mugs available OPEN TO P0BL1C NO COVER CHARGE ALL ABC PERMITS Must be 21 Located on Hwy 130 * Holden Beach Road * Shallotte Drug Bust Nets 4 At Sunset BY SUSAN USHER Four Hickory residents vacationing at Sunset Beach are free after posting $5,000 bonds following their arrest last week oo drag-related charges. Charged with simple possession of marijuana, possession with intent to distribute and possession of drug paraphernalia are Perry Boone Bentley, 27, of 2149 3rd St. SE, Jeffery Lee Dagenhardt. 32, of 2061 7th St NW; Franklin Burl Withers, 34, of No. 11 24th St; and Sandra Dee Johnson, 30, of Route 6. First appearance in Brunswick County Superior Court is set Aug 15 for Bentley and Dagenhardt; no dates had been set as of Monday for the remaining two defendants. Sunset Beach Senior Patrol Officer Ed Rudloff went to the four some's 38th Street rental house at about 11:10 p.m. Thursday, respond ing to a routine complaint of loud musk coming from the residence. As he went to knock oo the front door, said Police Chief J.B. Buell, Rudloff saw "one man rolling a joint and drags oo the tabic ui&iuc." That was probable cause for arrest" said Buell. Rudloff made the arrests with backup assistance of Frank Eaddy, a South port policeman who also works for Sunset Beach. Basil said tbe officer* mnfi&cated from rooms throughout the bouse three bags containing between a half-ounce to 2 ounces of marijuana each, several rolled marijuana cigarettes, a glass jar containing a sub stance that appeared to be "either marijuana or hashish, which we don't see very often," said Buell, two metal pipes and a water pipe, hemostats, rolling papers and three bundles of cash totaling $191. Also confiscated was a bottle of small white pills that were sent to tbe state crime lab for testing along wiih -fes other substances. "I think the officers did an excellent job making tbe arrest The prob able cause was there and they followed through," said Buell. "I'm sure there's more drugs out there. This is just one that caught Every little bit counts." U.S.A. TRAILER SALES & REMARKETING CO INC. 1-800-732-2304 704-784-4520 (Office) ? 704-784-4562 (Fax) J floating Bouquets now located inside Nancy's Emporium V - 2978 Kolden Beach RtL, beside Rampage Realty Open Sus-Thurs 8-6, M &. Sat 10-9 ?Balloons for all occasions ?Singing telegrams ?Used golf balls Private room available for club meetings! ?Gourmet coffee ?Fresh pastries ?Sandwiches 'Desserts Join our coffee club I Call 842-3661 ^ 1 579-0535 ^ E. Second Street ? 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The Brunswick Beacon (Shallotte, N.C.)
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July 14, 1994, edition 1
8
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