BY MARK J. CRAWFORD
Telegraph Editor
STARKE – Bradford County Commissioners are ready to prevent a bank foreclosure on the fairgrounds they said in a specially called meeting on Oct. 5.
The Bradford Fair Association is in default on a $1.5 million loan used to make improvements and has been unable to come to an agreement with Community State Bank, even with a benefactor offering to purchase the debt for $1 million.
Foreclosure is not imminent, and all parties are still working on a resolution.
Fair association President Bob Milner apologized for not coming to the commission sooner during the Thursday morning briefing, Unlike many other counties, Bradford County does not have a financial interest in the fair association property, but it has supported the fair association’s programs and supported its requests for state funding.
In 2019, the legislature granted the fair board $1.5 million to begin replacing the 50-year-old barn with a new, modernized arena for shows that would also double as a state-certified shelter against Category 5 hurricanes and other disasters. It was everyone’s understanding that the state would follow through with an additional $1.5 million award in its next budget.
In the meantime, the fair association borrowed $1.5 million from the bank to fund the reconstruction, planning to repay the debt with the second round of state funding.
That funding never came.
What happened instead, Milner explained, was spending on school security following the Parkland shooting, Hurricane Irma recovery and the COVID-19 pandemic.
Milner said local legislators sought fund for the fairgrounds, but even if successful, it turns out the funds could not have been spent on debt retirement — only a new project. Even with a new award — including the $3 million in state money received to rebuild the swine, chicken and rabbit barns — the fair association would still be making loan payments.
And it has been. For the last couple of years, Milner said the association has paid interest only of $4,500 a month, plus a voluntary $1,000. The loan was taken out with a variable interest rate, and with inflation driving up those rates, the association cannot afford the new $9,000-plus monthly payment.
Fair revenue and building rental fees are not enough to pay the bill. The fair’s profits haven’t recovered since the pandemic, and this year the event closed two days early because of bad weather.
Milner turned to a private donor who offered Community State Bank $1 million to settle the remaining $1.4 million note. The bank did not accept, and that is their right, he said.
According to Milner, a separate nonprofit established by the Bradford Fair Association, Cattleman’s Association and Swine Association will be holding a legacy donation campaign to raise capital as well as funds to repay the loan and plan future events, however, that is going to take time.
“There’s some people that will really make sizable donations, but we’ve got to move that forward as fast as we can. And we simply couldn’t put it together in time to avoid the bank doing whatever they wanted to do, or felt they needed to do,” he said.
Milner said a lien could be placed on the property, or the bank could foreclose. All 28 acres and millions of dollars in improvements are collateral and can’t be sold off to cover the loan payments. The association’s checking account was briefly frozen without notice, and $81,000 held in a CD remained frozen.
The bank vice president reached out to Milner to ask if the private donor would be willing to meet the bank’s CEO. That meeting was scheduled for last Friday.
Milner called it ironic that so much work has gone into the fairgrounds and planning its future only for this to happen. In addition to the buildings, 1,800 feet of drainage pipes and more than 331 loads of dirt were brought in to expand the midway so it could support much larger rides.
“We were actually planning the biggest and best fair ever next year,” he said.
Commission Chair Diane Andrews said they were shocked by the news, having just heard the day before the meeting. An emergency meeting was called because, she said, they were told the foreclosure was happening Friday.
“That’s why we asked for the meeting is because we don’t want to lose this. I mean, we don’t want somebody just to come in and pick it up and turn it into whatever they may see fit or mow it down and build something there,” she said. “
The county has funding in reserve, she said, but they needed to know what was going on. They had not heard about a possible deal.
Commissioners expressed support for what the fairgrounds has meant to the community and its future potential, and Milner said following the meeting with the bank, the association would be willing to talk with the county about how to move forward together if necessary. The commission directed County Manager Scott Kornegay to meet with the fair board if it comes to that. Time is of the essence, Kornegay said, because if the property foreclosure begins and the property goes up for auction, the county could not afford to get in a bidding war. They want to intervene before that happens.
Community State Bank Senior Vice President Joe Marsocci spoke up and said the bank has not started that process and has been doing everything possible to avoid it.
“We have not engaged counsel. We have not started any foreclosure proceedings at all. We are continuing to be just in conversation still,” he said, adding they had made a counteroffer and want to reach resolution.
“I asked our major investor to have this conversation,” Marsocci said of the scheduled meeting with Gissy. “He was more than willing to do that, because, again, we are a community bank, we do not want to impact communities if we can, but we’re also a small business.”
Milner said he’s tried to counter rumors of imminent foreclosure, saying the bank has given the fair association adequate opportunity to raise funds.
As of Tuesday, conversations with the bank were continuing, Milner said, and the fair association would be meeting with county staff.
“We’re not closing any doors at this point and will work with our partners to ensure the young people are able to show and sell their cattle and swine next March along with having one of the largest fairs ever due to the expansion of our midway,” he said.
