The Catoosa County Economic Development Authority's meeting on Jan. 10, its first of the new year, was devoted primarily to housekeeping matters.
Members were unanimous in deciding that the board's current officers - Randall Peters, chairman; Roger Bowman, vice chairman; and Rodney Crowe, secretary/treasurer - should hold those same posts for 2012.
The EDA also voted to renew a loan with Northwest Georgia Bank used for purchasing about 51 acres fronting state Highway 151 (Alabama Highway) just south of Ringgold as a site for industrial or business development
The loan carries interest that is 70 percent of the prime rate, currently 2.275 percent, but with a minimum of 3.25 percent, according to EDA attorney Chad Young.
The original loan of about $2 million has an outstanding balance of slightly less than $1.5 million, he said.
The EDA board also amended a tax incentive package with Shaw Industries that concerns their plant located near Interstate 75 exit 335, commonly referred to as the Truck City exit.
Chairman Peters said tax abatements were offered when Shaw was consolidating operations at Ringgold's plant and one in Algona, Wash., and the incentives package approved in 2009 was a major factor in keeping the local plant open.
Young, also the county's attorney, said the agreement provided for tax abatements for new equipment purchases for five years, but each year the agreement must be renewed to include whatever equipment Shaw has bought that year.
"The way it has worked for the past two years is each year they identify the equipment they add that qualifies for the abatement and they actually transfer title of that equipment to the development authority by a bill of sale," Young said.
The Development Authority then leases the equipment back to Shaw for the abatement period, he said, and, at the end of the period, Shaw buys it back for $1.
Last year, Shaw's accountants overlooked reporting what qualified for abatement during 2010 until well into the year, Young said.
That tardy action made it necessary to retroactively go through the process during 2011.
That did not happen with this year's tax incentives, Young said, noting that Shaw turned in a new equipment list in mid-December.