Sylva radio station owner offers up personal real estate to land county loan
The $289,000 loan from Jackson County to the new owner of Sylva radio station WRGC has finally gotten the green light, meaning the popular local station could be back on the air early next week.
“I think everything is in place to move forward with this,” County Manager Chuck Wooten told commissioners earlier this week.
WRGC went dead last August, a victim of dwindling advertising dollars in a souring economy. Sylva resident Roy Burnette hoped to buy the station and get it back on the air, but lacked the money or financing to do so.
540 Broadcasting Co., the business formed by Burnette, sought an economic development loan of $289,000 from the county. The deal has been in the works for months. Although commissioners OK’d the economic development loan in theory, it got hung up on issues of collateral. It was unclear what assets Burnette would put on the table to guarantee the loan.
Proper collateral, allowing the county to recoup its money should Burnette fail to make payments, is a touchy issue. The county’s track record for economic development loans has not been great in the past — finding itself in possession of the questionable collateral from underground fiber optic lines to 500 sewing machines — and it is trying to be a tad more judicious these days, explaining the hold up on the loan.
The issue of collateralization has now been resolved, County Attorney Jay Coward assured commissioners. Burnette will put up personal real estate “worth in excess of $175,000.” Additionally, an inventory of the radio station’s equipment shows that it, too, is worth in excess of $175,000, Coward said.
Of the total $289,000 loan, Burnette needed $250,000 to purchase the actual radio license from Georgia-Carolina Radiocasting Co. Some $39,000 was designated for acquiring the equipment needed to install the 5,000-watt station. Burnette is providing $100,000 in his own dollars for working capital.
Burnette plans to expand the radio station’s reach, previously limited to Sylva, from Canton in Haywood County to Topton in Swain County, which in theory also would expand advertising-revenue possibilities and make the station financially feasible.