Polk, Ducktown, Copperhill Try to Save Hospital from IRS, Debt
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SPORTS: LOCAL NEWS: Bosken resigns Memorial Day as Raider wrestling poppies available coach: Page 13 Saturday: Page 12 163rd Year • No. 23 24 paGes • 50¢ CLEVELAND, TN 37311 THE CITY WITH SPIRIT FRIDAY, MAY 26, 2017 Resolute looks Polk, Ducktown, to future in face Copperhill try of less demand to save hospital for newsprint from IRS, debt By BRIAN GRAVES [email protected] The president of Resolute Forest Products said Thursday his company is secure in its investments Commissioners vote to buy for the future at the company’s Calhoun plant. Richard Garneau was in attendance as the com- the remainder of bank loan pany hosted its stockholders at the Museum Center at Five Points. By LARRY C. BOWERS the bank loan and facing The Calhoun location is one of the earliest [email protected] default and foreclosure. newsprint mills in the South. Polk County Executive Hoyt Polk County and the city of In 2015, Resolute began con- Firestone and county attorney Ducktown are taking steps to struction of a $270 million state- Eric Brooks have been talking keep the Copper Basin of-the-art tissue machine and with bank officials concerning Hospital District afloat, at least converting operation in Calhoun the situation. To deflect fore- for the immediate future. to manufacture retail, premium closure proceedings, an option The hospital is wallowing in private-label tissue products. is to purchase the remainder of a quagmire of debt, especially “It’s probably going to take a the loan, becoming the lender on a $1.4 million bank loan year or two to bring production to of the hospital funds. and a compiled debt to the its full potential,” Garneau said. Ducktown is financially able Internal Revenue Service. This “We are already pretty happy with to purchase its one-quarter situation has forced the hospi- the trend in getting new orders share of the line of credit guar- tal to limit services and treat- and working with the retailers so, antee ($200,000), but Copper Garneau ment for an interim period of by the end of this year, we are Basin is not. time. probably going to be sold out. At least that is what The Polk Polk County, Polk County, Ducktown we are hoping for.” County Ducktown and and the City of Copperhill Garneau said the downgrading of newsprint mills Commission the city of (Copper Basin) had previ- is going to continue. voted following a Copperhill ously guaranteed a $1.4 “As more and more people are switching to elec- lengthy discus- (Copper Basin) million line of credit from tronic media, unfortunately newsprint is going to sion Thursday had previously United Community Bank continue to decline,” he said. “It’s going down about evening to pur- guaranteed a in Blue Ridge, Ga. The 10 percent per year.” chase the $1.4 million line county guaranteed a line Resolute has already closed newsprint machines remaining 75 of credit from of credit for $700,000, in Georgia, Canada and South Korea. These phoToGraphs supplied by Resolute Forest Products show the state- percent of the United while the two cities guar- “It think the industry is going to likely see more of-the-art tissue machine now in operation at its Calhoun plant. loan ($600,000), Community anteed $350,000 each. machine closures in the years to come,” Garneau becoming the Bank in Blue This took place on Nov. said. major lender. The Ridge, Ga. The 20, 2008. That stark view of the newsprint business is not a bank has agreed county guaran- bleak view of the Calhoun plant’s future. to waive any late teed a line of credit for “The focus we have here in Calhoun is to use the charges or incidental fees on $700,000, while the two cities quality pulp we have to continue to integrate, and the $800,000 remainder of the guaranteed $350,000 each. so we have to make this project profitable so when loan. This took place on Nov. 20, it starts to generate cash, we are going to be able to Any future hospital pay- 2008. hopefully build another machine and converting ments will go to Polk County The hospital has paid down lines.” (75 percent) and Ducktown (25 the loan to $800,000, leaving Garneau said with the location of the Calhoun percent). the guarantees at $400,000 mill, the company is reaching out to a significant Bank officials attended and $200,000 for each of the number of consumers. Thursday evening’s meeting as municipalities. “This is the long-term plan,” he said. “This plant commissioners considered the But, while paying on the used to have five machines and now it is down to resolution to purchase the loan, hospital officials had not three newsprint and specialty machines. We are loan. Also attending was Tim paid employee withholdings looking to have more tissue capacity here.” Henry of the hospital. into the IRS, accumulating a Garneau said the company has access to “good Henry is a financial consult- debt of $550,000. Since that quality wood, affordable electricity and good labor” ant assisting the hospital as an time, the hospital had paid the interim CFO, along with his IRS down to $300,000, but is See RESOLUTE, Page 10 three payments in arrears on See HOSPITAL, Page 12 Holiday weekend travel expected to be heavy CU is looking to repair By ALLEN MINCEY with you,” he stressed. "Our primary goal is to honor this [email protected] One thing that motorists will not have to Memorial Day weekend by reducing the worry about this holiday weekend is road number of traffic fatalities across Tennessee,” or replace transformer Officials are expecting this Memorial Day construction, as the Tennessee Department added Tennessee Department of Safety and damage to the windings that weekend to be one of the most heavily trav- By LARRY C. BOWERS of Transportation is suspending all work Homeland Security Commissioner David W. [email protected] were a clear indication of inter- eled in over a decade, and law enforcement until 6 a.m. on Tuesday. The road con- Purkey. “Currently, we are seeing an increase nal failure. is preparing to be out monitoring the road- struction stoppage begins today at noon. in distracted driving crashes resulting in Cleveland Utilities is making Photographs from the tests ways in force to try to curb the number of “With nearly 700,000 drivers expected to injuries and fatalities. We hope that drivers plans for repair or replacement show movement had occurred accidents that might occur. travel on Tennessee’s roadways this will make safe choices when traveling on our of a 1958 transformer which within the windings. They The Cleveland Police Department, roadways. State troopers will do their best to has become a problem. showed deformity of the lami- “During patrol saturations this Charleston Police Department, Tennessee enforce the traffic laws and keep all Manager of Electric Division nation and misplacement of the weekend our personnel will target Highway Patrol and Bradley County Tennesseans safe.” Operations Dean Watson blocks and spacers that could impaired driving, and there will be no Sheriff’s Office will be watching the roads There will be more motorists on the road reported to the Cleveland Board normally be very uniform and tolerance for those drivers who make carefully and pinpoint those drivers who than in recent years for a reason, according of Public Utilities on Thursday symmetrical. a decision to operate a motor vehicle might present a danger to themselves and to AAA. The organization estimates 39.3 about difficulties at the East Work then shifted to the while impaired.” others. million Americans will travel 50 miles or Cleveland Primary Substation spare unit, and a complete bat- — James Bradford “Road safety is everybody’s responsibili- more this Memorial Day holiday, which is a almost two weeks ago, which tery of tests were performed to ty,” said Bradley County Sheriff Eric 2.7 percent increase over last year. This resulted in staff review and ensure the unit’s integrity, said Watson. “Drivers following the rules and Memorial Day weekend, we want to do what also marks the highest travel volume on testing of the facility. Watson. The spare, along with driving in a safe and conscientious manner we can to help them reach their destina- record since the 2005 holiday, and AAA He said subsequent testing the two remaining units, were is the only way to ensure everybody’s safety tions safely,” TDOT Commissioner John estimates nearly 700,000 Tennesseans on revealed high levels of com- energized on Monday morning. on roadways this weekend. Schroer said. “We are suspending construc- the road today through Tuesday morning. bustible gases in the East Current plans are for load to “Always keep in mind that poor decisions tion-related lane closures during this holi- “The expected spike in Memorial Day Cleveland C-phase transformer. be added Tuesday, to allow for made while driving jeopardize the safety of day weekend to reduce congestion and Additional testing by Liberty other drivers who are sharing the roadway delays on our major highways.” See TRAVEL, Page 10 Power Service revealed internal See TRANSFORMER, Page 10 WEATHER INDEX Today should be sunny, with a high near 83. Church..............................6-7 Opinion...............................16 Tonight’s forecast calls for partly cloudy skies and a low around 65. Saturday calls for partly Classified.....................22-23 Stocks...................................4 In observance of Memorial Day, the Cleveland Daily Banner will publish sunny skies and a 30 percent chance of rain, Comics...............................19 Sports......................... 13-15 6489076 75112 a Monday edition on an early holiday deadline; however, our offices on with a high near 83.