The U.S. Department of Agriculture has asked Sampson County to close out outstanding loan obligations for school construction, or at least gauge when those funds can be expected by the federal agency.

In the same breath that USDA officials gave deadlines for the county to either proceed with or cancel obligations set aside for future school construction projects — Charles E. Perry and the Sampson Community College’s Early Childhood Development Center — delayed a year ago and in the works for more than four years, they requested that other loans from completed projects be closed.

The issue was discussed during a joint meeting between the Sampson County Board of Commissioners and three other local school boards, including the Sampson County and Clinton City boards of education, as well as trustess of SCC.

County manager Rick Moorefield presented a notification from Ed Causey, area director for USDA, stating that loan obligations were still outstanding for Union and Midway high schools in the amount of $3.75 million each.

“Both schools have been substantially complete for more than one year. In fact, you are starting your second year in both locations,” stated Causey in his letter to Moorefield, dated Sept. 28. “From a USDA standpoint, we need to determine the status of these loan obligations.”

Causey said the agency has not received all of the requisite “close out documentation” relating to the schools, and it was important to either close out the loans or determine they are not needed and cancel them.

“We do believe it is appropriate for everyone involved to make these projects a priority if the USDA loans are still needed,” stated Causey. He requested that the county advise him within 30 days as to the status of the loans and when it can be expected that all paperwork would be completed. Closing arrangements would then need to be discussed further.

“He’s not asking that we close it; he’s asking that we advise him when they will be closed,” Moorefield said to the Sampson County school board at this week’s meeting. “I really think we need to have a closing date established.”

Kim Miller, area specialist for USDA, stated via e-mail to Moorefield that there are still outstanding balances of $29,360 for Union and $16,900 for Midway, numbers relayed by Moorefield.

“We were under the impression that we actually had to have it spent and checks cleared and everything prior to closing,” said Anthony Vann, executive director for auxiliary services for Sampson County Schools. “If they’re satisfied with where it is at this point, then we are ready to close.”

Vann said Dec. 1 would be a good target date to do so.

In her correspondence, Miller noted the county made interim advances toward the Union and Midway projects of approximately $4.3 million and $3.5 million, respectively. Those advances are eligible for reimbursement through the USDA loan once closeout documents are received and the loan is held up to the $3.75 million.

However, she also noted that no confirmation has been received by USDA that N.C. Road Widening monies totaling roughly $520,000 have been obtained by the county through the N.C. Department of Transportation for either project. That equates to $207,950 for Union and $311,900 for Midway.

Vann said that continued to be in the works, with checks expected to be cut in the near future.

“They told me they would e-mail me as soon as the checks went through the processing machine,” Vann said.

Clinton High School

Changing school systems, Moorefield said the new Clinton High School project was still not closed out either.

Miller told the county manager last week that USDA still had nearly $1 million remaining to be dispensed on the Clinton High School loans. Concerning those loan obligations, Miller said there is still roughly $251,000 left to be paid on the construction contract, which needed to be closed as soon as possible.

“We’re waiting for him to complete the last of some paperwork,” said Clyde Locklear, assistant superintendent of finance/facilities for Clinton City Schools. “We’re holding money until that’s all in place to pay that out. The ($251,000) that’s referred to there is for construction contracts that will be paid out as soon as the proper paperwork and documentation is done.”

Beyond that, there are some contingency funds for additional projects the city school board is working to complete, including those concerning athletic facilities and related projects, he said.

The largest of the projects, Locklear pointed out, is a concession/restroom facility. The contractor has given a 90-day estimate for construction. Locklear said he gave him 120 days, factoring in weather and other issues.

“They’ll probably (be) complete the first of the year, probably February, March time period,” Locklear said. “They should be totally complete and completely paid off, all bricks in place and all checks cut. It’s paperwork that’s holding up the final payment to the contractor, it is paperwork he needs to complete to close out the project.”

The total project budget includes $700,000 in contingency funds for the total project budget, of which $400,000 come from the March to a Million fund.

“The vast majority of the USDA money will go away when these last liens, lien waivers and those things are completed by the contractor and we can pay him off,” Locklear said.

Moorefield said he gave USDA March 15, 2010 as a date to pay off the loan.

“We’ll work with it,” Locklear said.

Chris Berendt can be reached at 910-592-8137, ext. 121, or by email at sicrime@myclintonnc.com.