HAPPY 4TH OF JULY FROM ELLIJAY, GA.

BOC Chairman's Report

Here is the Gilmer County Board of Commissioners Chairman's Report for the week of June 29th.

More consideration is going into the possible airport expansion. A study will likely be commissioned next week to look at the economic impact. One item of concern that has surfaced has been the impact of increased heavy air traffic in the approaches over Coosawattee River Resort. Increased industry and jobs would be a big plus for Gilmer County. Our job is to consider the over all cost and long term benefits.

We will soon be beginning an informal survey of members and patrons of the golf course. The purpose is to gauge their feel for the course, the management, costs, etc. This will be used to evaluate the approach and future of the golf course. We continue to receive comments both for and against change.

One point of discussion over the last few weeks has been the current parking arrangements behind the old bank building. With the Sheriff’s Criminal Investigation Division (detectives) now occupying the old bank, there has been an increased need for parking. While the first plan was to dedicate all spaces to the CID staff, we have agreed to share this parking are with other employees in the basement level of the courthouse until the new parking lots can be completed later this summer.

Unfortunately, the legislature eliminated the state exemption portion of property tax bills. This will result in an increase on this year’s property tax bills regardless of what the county and school board do with the millage rates. The estimate is approximately $150 on the average residential tract with homestead exemption. Tracts without homestead exemption will not be affected. This is the amount that the state used to discount from the property tax bill and then rebate to the county government. This rebate is also eliminated from county revenue projections. It is unfortunate that the legislature enacted these measures during today’s economic conditions.

I’d like to encourage all county residents to support our local businesses. With sales tax revenues far below projections of just a couple of years ago, every dollar counts. Last Friday I enjoyed a game of bowling with lunch at our relatively new bowling alley “The Alley” on Industrial Boulevard. The Friday “lunch and bowl” is a neat concept that makes for a relaxing end to the week. New owners Jason Martin and Brad Farris have been working hard to improve the environment around the bowling alley. It is a very good family atmosphere, I would encourage everyone to make a visit and see it for yourselves.

Our Ford ambulance problems continued last week. I’d like to thank Fannin County for loaning us one of their spare ambulances so that our level of emergency services was not compromised. I believe we are close to having the situation resolved now and shouldn’t have many problems as we go along. We may try to replace the chassis on one or more of the older ambulances if we can determine that such is the most cost effective approach going forward, as opposed to continued maintenance costs. I also want to express my appreciation for the Fire-Rescue staff that didn’t complain but did their jobs well while having to switch from one truck to another on a sometimes daily basis.

As always, feel free to contact me by email (mchastain@gilmercounty-ga.gov) or by calling the BOC office at 706-635-4361. Comments can be left on 706-515-2320.

How is the Real Estate Market? - Part 1

This is the 1^st in a series of articles I plan to post on the Gilmer real estate market to try and explain how we got where we are, how bad it is and what it will take to climb back out. For the record, I don’t pretend to know everything there is to know about economics or real estate. However, I have been in the real estate industry for 40 years on the government side, in the banking industry and running my own company so I do have, at least, an informed opinion.

Being a real estate broker and co-owner of a real estate company in Gilmer County, the question I am most asked is: how is the real estate market? Well, not being one to lie I have to answer, terrible. Generally speaking, this is the worst real estate market that I have seen in the 40 years that I have been associated with the real estate industry. The next closest was in the early 1970s, and this market does have a lot of similarities with the 1970s. Like the 70s, this real estate “crash” was brought on by lenders not knowing when to reign in lending. In fact, the real estate “crash” of the mid to late 1980s was also brought on by lenders (savings and loan industry) not knowing when to stop lending.

Unlike a widget manufacture that can walk into his warehouse and count the widgets on the shelf, call his sales department to check on the number of widget orders and then match production to his supply and sales, the lending industry seems to not have the ability to look at the quantity and quality of what is in its supply chain, the number of units currently on the market, the absorption rate and then match loan production to supply and demand. Let’s not kid ourselves, this whole debacle starts with the loan officer that gives the developer a loan to purchase that large tract of real estate that will be sub-divided and sold off into lots for builders to purchase and build houses on in hopes that a family will buy the house. The lending institution isn’t the only problem and, after all, in order for a bank to make money it must lend. We certainly have found out over the past 8 to 10 months what happens to the economy when the lenders stop lending.

Some of the blame is shared by the developer that decides, in the face of an oversupply, to start a new development. Each developer always believes (and convinces the lender) that he has found the unique niche. His development has the best views, best water features or best amenity package that will lure the buying public to purchase his lots over all the others that are on the market. Unfortunately, there are a few factors that come into play that seem to be overlooked. The one I have noticed most is that the numbers of lots in a development that are truly unique are generally only a small minority of the total number of lots to be sold. Thus, the unique lots are sold first and the remainder has to compete with the next development that comes on line or all the non-unique lots that have previously been developed.

Another factor that comes into play is who assumes the most risk. Quite often lenders will give developers non-recourse loans on development tracts. Where you and I must pledge our “life, liberty and pursuit of happiness”, in addition to the property, when buying a home, the developer can often get a loan to purchase a large tract of land and only pledge the land as collateral. This means that in the event of a default, the lender can only take back the property and has no further recourse against the developer. This places much of the risk of development on the lender. One would wonder why would a family have to pledge our “life, liberty and pursuit of happiness” to buy a home when the developer (borrowing much more money) can walk away from a default and only give up the property? Well, at least part of the answer has to do with the fact that most local development loans are held by the originating lending institution that makes them while most home loans are sold on the secondary loan market. These secondary lenders require recourse to the borrower beyond the value of the collateral. The effect that this has on the market is that quite often; feasibility studies are not done by either the developer or lender so neither party really knows whether there is a market for the contemplated development or what the competition may be.

While all of this contributes significantly to the problem there are more “gremlins” in the process and, keep in mind; for a developer to make money, he must develop. In future installments we will look at how the speculators, builders and even the federal government have exacerbated the situation. We will also look at "the numbers" and compare existing sales to recent years.

The above is my opinion you are welcome to comment and share your opinion.

Creepy Crawlers Invade Golf Course

Monday June 29^th the Whitepath golf course was again invaded by the infamous Creepy Crawlers in their quarterly Scramble. Normally, the golfers play a “much” modified Stableford match each Monday and Thursday. Teams are picked, at random, while players are on the course and cash prizes are awarded to the 1^st, 2^nd & 3^rd place teams. In addition cash prizes are given to closest to the pin on three of the four par 3 holes. There are usually 45 to 55 players on any given Monday & Thursday. About once a quarter the Crawlers meet for a best ball scramble. Today sixty one golfers played in the scramble. Players were teamed in foursomes based on their handicap (very loosely defined). Each team had an A, B, C & D player. Again the three top teams and closest to the pins received cash prizes.

The 1^st place team (from left to right in the picture) was Jim Berman, T.J. Thompson, Ron Hartness and Matt Kwrzawa.

The 2^nd place team (from left to right in the picture) was Chuck Gregory, Jack Smith, Ted Koerner & Roy Hartsfield.

The 3^rd place team was (from left to right in the picture) was Alan Keller, Allan Ward, Larry Nitz and Dave Bicker (not pictured).

The Creepy Crawlers is an organization of golf lovers that is open to anyone who wishes to join. It is for golfers that can play fairly consistently and don’t mind playing with different golfers each time out. Skill level doesn’t matter as teams are picked at random each time out. You do need to play three times in order to get your handicap (very loose definition). From then on out it is how many strokes you go above or below your base that counts.

The Creepy Crawlers tee off each Monday & Thursday at 9:00 a.m. but you need to be at the course and checked in before 8:30 a.m. Late arrivals cannot participate as foursome and hole assignments are made between 8:30 a.m. and 9:00 a.m.