County to recoup $20K of King Tire loan [McCreary County Record, Whitley City, Ky.]By Janie Slaven, McCreary County Record, Whitley City, Ky.McClatchy-Tribune Information Services
Dec. 11--STEARNS -- The county will recoup at least some of the public funds invested at the former King Tire Recycling facility at Stearns.
Last month, McCreary County Deputy Judge-Executive Andrew Powell attended a meeting in Knoxville among various lienholders trying to settle their claims following the August 15 fire which devastated the tire shredding facility.
According to Powell, King Tire Recycling had two loans through the old McCreary County Industrial Authority -- a $35,000 SMART loan which included a lien on facility equipment and a secondary $65,000 which had been secured only through a promissory note.
With an $858,000 insurance payout on the company's capital losses expected to go to a particularly large creditor (owed more than $1 million), Powell was able to negotiate for the county to recoup $20,000 of the SMART loan.
The deputy judge credited local agent Buddy Wilson who worked with adjusters at Essex Insurance to assist the county. Powell also said that at least two of the partners in King Tire Recycling have indicated a desire to repay the county.
The Kentucky Energy and Environment Cabinet -- which houses both the departments for Environmental Protection and Natural Resources -- had reportedly already secured $20,000 toward cleaning up the site and has requested an additional $96,000 of property insurance proceeds be placed in escrow.
State officials contracted with Liberty Tire Recycling in October to haul away what didn't burn. At the time Anthony Hatton, Director of the Kentucky Division of Waste Management, estimated there were 15-50,000 whole tires and 5-6 tons of shredded tires on site.
Beginning the week of November 26, remediation began through the state's Superfund program which addresses abandoned hazardous waste sites.
McCreary County 911/Emergency Management Director Rudy Young said yesterday that the project is currently in a "capping phase" where hot spots are being dug up, treated and reburied.
King Tire Recycling, which is headquartered in Scott County, TN, leased the McCreary County site from Stearns Lumber Company (not to be confused with Stearns Coal and Lumber which dominated the local economy for most of the 20th century).
At press time, it is not clear whether the local site will be permanently capped or can be rehabilitated for future use.
(c)2012 the McCreary County Record (Whitley City, Ky.)
Visit the McCreary County Record (Whitley City, Ky.) at mccrearyrecord.com
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