BAKERSVILLE — The Mitchell County Board of Commissioners unanimously approved a decision to provide $150,000 to Mayland Community College to be used for costs in the ongoing renovations to the Pinebridge Inn.
At the meeting, President of Mayland Community College Dr. John Boyd explained that, despite the rumors swirling, Mayland intended to pay taxes on the hotel.
“We are a very unusual organization,” he said. “Our enterprise corporation is a separate 501(c)(3), that is unlike our foundation. The foundation raises money. The enterprise corporation is designed to help run the college business. And there isn’t any other college that does that. So, we’ll pay corporate taxes and all of that.”
Mitchell County Attorney Lloyd Hise clarified the point further and explained 501(c)(3) organization groups, like Mayland, were only exempt from paying taxes if they were providing a charitable act at the hotel. However, they are not.
“If they were using that as a place to feed the homeless, they would be exempt,” Hise said. “But they are not exempt from business enterprises that they run...It not only has to be a charity, but it has to be done for a charitable purpose. And no one’s going to say that a motel, especially one that serves alcohol and other things, is a charity. It’s a business.”
“And we’re not even going to apply for the tax exemption,” Boyd said of the hotel property.
Commissioner Danny Burleson, who was not present at the public hearing regarding the project on Nov. 23 due to sickness, chimed in his support.
“Folks, this is what economic development is all about,” she said. “It’s about something that will bring money back.”
Commissioner Matthew “Vern” Grindstaff said he recognized the need for a hotel and the importance of economic development, but said he was worried about the county’s finances.
“There’s no argument this is great economic development,” Grindstaff said. “There’s no argument that we need a hotel in Mitchell County. As I’ve thought through this a little bit, and I would never think this way outside of the circumstances of this year, but Mitchell County is projected to have to use $1.2 million in fund balance to balance our budget next year. We have other unknowns that could possibly come down the pipe that could put us in more financial distress.”
Grindstaff then asked Boyd if he would consider a loan to pay back to the county after two years of the hotel being open that would go back into an Economic Development Commission fund that would support other business start-ups through loans.
However, Boyd said he did not believe that would be possible.
“Not at this time, no,” Boyd said. “We are so tied right now to so many other projects. Keep in mind, this is just a small piece of what we’re doing. We’re actively trying to raise money...So, we do a lot already to keep costs down and keep from asking for more.
“I mean, you guys have been generous for giving what we ask, but we don’t nearly ask what the need is. Because we depend on finding other funds and we’ve been pretty good at it.”
Burleson made the motion, which was seconded by Commissioner Jeff Harding. The motion then passed unanimously, 5-0.
The decision was made following a public hearing on Monday, Nov. 23 in which community members had the opportunity to provide input on the issue.
The money will go toward renovations of the second floor of the hotel, which Boyd said they plan to open in May of 2021.