Claims that Virginia is falling behind in a nationwide race
to cash in its share of the Master Settlement Agreement payments
are "a bit overstated," members of the Tobacco Commission
said yesterday.
Critics suggest the delay in selling its share of the tobacco
funds on the bond market could potentially be costing the state
tens of millions of dollars in lost revenue for struggling rural
communities in Southside and Southwest Virginia.
But Sen. Charles Hawkins, who chairs the Tobacco Indemnification
and Community Revitalization Commission, the state agency securitizing
the settlement money, says that Commission members must exercise
caution before taking any steps with the funds.
"We can't just go ahead and (securitize the funds) without
having a plan in place," the senator said yesterday. "We
can't afford mistakes.
''When you're looking at the only new source of income in our
area of the state, we can't afford to gamble on that,'' he added.
In April, Gov. Mark Warner signed off on a plan to sell, or ''securitize,''
half of Virginia's share of the national tobacco settlement to
private investors.
Proceeds from the sale - initially estimated at $645 million -
would be placed in an endowment to compensate tobacco growers
and fund economic development projects.
Ten months later, state officials are still working out details
of the sale.
Carthan Currin, executive director of the Tobacco Commission,
said the process was a complicated one.
"You have to realize that some of this is beyond our control,"
he said yesterday. "We're dealing with a 31-member Commission,
multiple state agencies, the government, the governor's office
and a bond council."
Meanwhile, nearly a half-dozen states plus Puerto Rico have flooded
the bond market with billions of dollars in tobacco settlement
money. At least four more states are close to completing securitizations
estimated at more than $7 billion.
Currin said that the market should have no problem absorbing the
money.
"The bond people that we talked to think the money Virginia
is trying to securitize is not that large when you look at it
in terms of some other states, so they think there will be a better
market for it," he said.
"What we're trying to do is get on the express way before
we get into a traffic jam," Currin said.
As a result of the ten-month wait, some reports say the value
of Virginia's portfolio has likely dropped to less than $600 million.
Several Commission members said this could be an overstatement.
"Those numbers are only as good as the day they were printed,"
Hawkins said. "The volatility of the market changes the numbers
from day to day.
"We won't know the exact dollar amount until the day we put
the money on the market," he added.
But Currin offered an approximation.
"At the end of the day, we're looking at somewhere around
$600 million," he said. "But the important thing to
remember is those figures are extremely fluid.
"Until the bonds are sold and we're in the market, those
figures are assumptions and could change," he added.
"I have not seen any documentation on (those figures,)"
Del. Clarke Hogan, who serves on the Commission, said yesterday.
Others involved with the Commission point out that timing Virginia's
entry into the market is crucial.
''We have to get in soon because, at some point, the market is
going to be saturated with these tobacco bonds,'' said Stephanie
Wass, director of finance for the Commission the state agency
securitizing the settlement money. ''We have lost some money by
waiting this long.''
Hawkins said that some of the predictions could be exaggerated.
"I think some of the assumptions that we could be losing
that much money are a bit overstated," he said yesterday.
"Being able to guarantee that we have the money over the
long-term is worth any risk we could incur," he said.
Wass said Commission administrators hope to go to market by late
March.
By selling off its tobacco settlement money, Virginia sheds the
risk that settlement payments will shrink or disappear if cigarette
manufacturers go bankrupt or shut their doors.
Warner said the 31-member Commission needed to develop a long-range
spending plan for the endowment before officials could proceed.
Specifically, the Commission needed to determine what percent
of the bonds would be taxable and what percent would be tax-exempt.
Commission members adopted that plan Feb. 6.
''If the Tobacco Commission had approved the plan last summer,
could it have been brought to market earlier? That's probably
true,'' Warner told The Roanoke Times. The governor said no government
can go to market without first telling bond counsel the breakdown
of tax-free debt and taxable debt.
''That's just the normal structure of any financial deal,'' Warner
said.
Hawkins said that determination was made at the Commission's February
meeting.
"We have decided on 20 percent taxable and 80 percent non-taxable,"
Hawkins said. "That gives us more flexibility in our ability
to invest the money, and a better opportunity to be able to offer
security in the market."
The Tobacco Commission's Vice Chairman, Del. Terry Kilgore, said
the Commission did not draft a long-range plan earlier because
Commission members were busy rallying support for securitization
last year in the legislature.
''It took some time for a long-range plan to come together because
you have different interests in bringing both Southside and Southwest
together,'' Kilgore said. ''Hopefully we haven't lost that much
and, with good investments, we'll be able to gain some of those
dollars back.''
The Commission's long-range plan calls for spending from $35 million
to $63 million annually through 2018 on tobacco grower compensation
and community revitalization projects in Southwest and Southside
Virginia.
Warner said he is urging the commission to assemble a team of
experienced financial professionals to manage the endowment, which
he calls ''a $600 million economic development bank.''
''The worst would be if these dollars were frittered away on political
projects,'' Warner said. ''For Southside and Southwest, this is
the best chance for a major economic development boost for the
region.''
Hawkins agreed.
"We want to make sure we have this money in place for the
generations to come," he said. "That requires a plan
be in place that offers some stability."
ABB officials said that a Chapter 11 filing in the Delaware
bankruptcy court by its U.S. subsidiary Combustion Engineering,
Inc., will have "virtually no impact" on its South Boston
operation which produces small power transformers.
Combustion Engineering (CE) previously announced a prepackaged
plan of reorganization which was negotiated with certain asbestos
claimants' lawyers.
The voting period for the plan commenced in January and is currently
scheduled to end on February 19, 2003. As of Saturday, February
15, approximately 103,000 favorable votes had been received, together
with less than 1,000 votes against the plan, according to a news
release.
To be successful, it must be approved by at least 75 percent of
all claimants.
Some analysts predict the asbestos settlement will cost ABB more
than $1 billion.
CE officials said that they decided to file the Chapter 11 case
prior to February 19 in order to foreclose any possible last minute
effort by objecting claimants to file an involuntary bankruptcy
and thereby interrupt the voting process.
Investors reacted favorably to the Chapter 11 filing by sending
shares of ABB up 19 percent in Zurich on Monday and 14 percent
yesterday on the New York Stock Exchange. Shares of ABB were up
$0.35 for a 14 percent increase.
ABB's trading range on the NYSE during the past 52 weeks has ranged
from $1.10 to $9.84 share.
Ron Kurtz, CE's spokesman in Newark, Conn., said yesterday's positive
reaction by investors was the "best impact" on South
Boston as well as other ABB subsidiaries.
ABB Ltd., based in Zurich, Switzerland, is a global provider of
power and automation technologies to utility and industrial customers.
The ABB Group of companies operates in more than 100 countries
and employs an estimated 146,000 people.
Employment at the South Boston transformer plant ranges between
400-600 persons based on information provided to the Halifax County
Chamber of Commerce.
Blaming changing market circumstances, Dominion Energy has
announced it will discontinue plans to invest $629 million to
build an electric generation facility in Person County, North
Carolina.
The decision comes shortly after the energy company purchased
110 acres for the proposed plant for $2.3 million in late December.
The decision to scrap plans for the new power plant was made at
the end of last week, Applewhite said yesterday.
A meeting originally scheduled tomorrow night in Roxboro, one
that could have potentially sealed the deal for Roxboro and Person
County's proposal to draw up to 30 million gallons per day (MGD)
from the Dan River - with some of the draw destined for the power
plant - also was cancelled yesterday.
The meeting had not been rescheduled as of press time Tuesday.
However, Person County Manager Steve Carpenter said yesterday
that Roxboro and Person County were looking for "a 50-year
water supply."
"We know we want the water," Carpenter told Roxboro
Courier-Times Associate Editor Winkie Wilkins yesterday.
"We know where it is, we know we can get it permitted, we
know we can get along with all the governments that are interested
in water," Carpenter said.
"Now we have got to figure out how to finance it," he
continued, noting none of the four government entities (Roxboro,
Person County, Yanceyville and Caswell County) was prepared to
deal with financing it individually.
Carpenter said the cost of debt service and operations was "too
much for any of us singly."
The Person County manager told the Courier-Times he thought it
was important "that we go ahead and get that piece of it
(the water supply) in place because the money has been spent on
it and none us will have to start over and spend a half-million
again."
Approximately $500,000 had been spent for engineering and getting
permitting for the water project.
Yesterday, the Dominion spokesman said that "changing market
circumstances no longer support development of the proposed facility
at this site" in North Carolina.
"We continue to actively evaluate the company's alternatives
for siting gas-fired power generation, taking advantage of the
access to gas supply basins that will be provided to this region
via the Greenbrier Pipeline," added Applewhite.
"We remain committed to serving the power generation needs
of markets in North Carolina and we're confident in the market
opportunity.
"We are grateful for the enthusiastic support and hard work
on the part of officials from Roxboro, Person County, and other
state and local representatives. We share their disappointment
in the cancellation of this project," Applewhite said.
Dan River Water
Neither Halifax County nor South Boston had taken a formal stand
on the Dan River water withdrawal proposal prior to Dominion's
project cancellation.
Halifax County Administrator Joe Morgan said Tuesday that the
county was monitoring the process.
"We have a major group that participates in (the proposal),
the Partnership of Regional Governments," Morgan said. "To
the best of my knowledge, they haven't recommended any action."
Three governmental bodies had been expected to gather Thursday
night in the hopes of aligning themselves in a regional water
authority.
The City of Roxboro, the County of Person and the Town of Yanceyville
had all but signed on a deal to set up a regional water system
that would draw water from the Dan in Milton, according to the
Roxboro Courier-Times. Reports also indicate Caswell County was
ready to come in.
Planning for the arrival of the plant, Roxboro and Person County
proposed a plan to obtain as much as 30 MGD from the Dan River.
But in order to carry out the plan, they need a partner in Caswell
County, where Milton is located.
Yesterday, the Halifax County administrator suggested that the
issue far exceeds the power of any local government.
"I think the precedent was set (during the Lake Gaston Pipeline
battle) at the state level far beyond the level of a local government
to be able to affect," he said.
Halifax County would have been represented at the meeting by members
of both the local planning commission and the Partnership, according
to Morgan.
Assistant County Administrator Jerry Lovelace, who works in Halifax
County's planning office, said earlier that the proposal could
be a "huge issue" for Halifax County.
"Currently, the county has taken no position, either for
or against the proposal," he said. "But we do feel that
the 30 MGD is excessive in that we have no information to justify
such a large draw.
"Based on what we know, there is only justification for about
half (of the 30 MGD figure.)"
Roxboro had cited the need for the additional water to the intention
of Dominion Power to build and operate a power plant on the south
side of the city.
Officials with both Roxboro and Person County had said that increased
needs are anticipated in projected growth for both jurisdictions.
According to Dominion officials, at the maximum, only 8 MGD would
have been needed for the plant.
A multi-jurisdictional Grand Jury in Halifax
County Circuit Court has indicted Kenneth Alonzo Hodges II in
the shooting death of Shelly Marie Jackson on or about September
1, 2002.
Meeting last Thursday, the Grand Jury charged Hodges, a 23-year-old
South Boston resident, with the murder of Jackson and the use
of a firearm to commit murder.
The Grand Jury returned one additional indictment against Hodges,
charging him with feloniously possessing a firearm under the age
of 29 after being convicted of a crime as a juvenile 14 years
of age or older, that would have been a felony had he been an
adult.
The body of Jackson, missing for several days prior to September
4, was found in a pine thicket approximately 200 yards from the
end of Greenfield Road in the Woodlawn subdivision.
Authorities confirmed that Jackson died of a gunshot wound.
Early Wednesday afternoon last September 4, investigators had
arrested Hodges on an unrelated charge involving a violation of
his $100,000 bond.
Hodges' arrest came when investigators discovered he had violated
one of the conditions of his bond, which called for him to have
no contact with Shelly Jackson.
That no-contact stipulation was ordered by Judge Joel Cunningham
on June 17 of last year.
Halifax County Sheriff Jeff Oakes added that Jackson could (have
had a relationship with) someone else who may be a suspect as
well in the murder.
Investigators were sent to the scene after a family member allegedly
alerted them that Jackson had been seen in the area.
They started their search shortly after Jackson was reported missing,
but, according to Oakes, were unable to find the victim's body
in the dark.
Searchers reportedly continued the search the following morning,
finding an earring (which they later discovered matched one found
on the body), a pocket knife and a hair accessory along the trail.
Nearby, searchers discovered two large blood stains on the ground,
and later that morning Jackson's body, which had been dragged
from the trail into the thicket.
Jackson, who at the time was facing drug-related charges, had
been asked to testify against Hodges on drug conspiracy charges,
according to Commonwealth's Attorney John Greenbacker.
Hodges was charged at the time with conspiracy to distribute narcotics
and firearms charges, Greenbacker said.
Other Court
A Halifax County Circuit Court jury convicted Samuel Clifton Ferguson,
49, of South Boston, of animate sexual penetration of a child
under age 13.
The jury returned the verdict after a trial last Thursday.
Judge Leslie M. Osborn affirmed the jury's verdict on Friday,
but did not affirm the jury's recommendation that Ferguson serve
12 years in prison for the crime.
Judge Osborn set a sentencing date for the April court term, with
Ferguson remanded to custody until that time.
One season is over and a new one starts tomorrow night for
the Halifax County High School varsity boys basketball team.
The Comets (10-9 overall, 4-4 district), the second-place finisher
in the Western Valley District, standings, will host third seed
Franklin County Thursday night at 7 p.m. in one of the semifinal
games of the Western Valley District Tournament.
This marks the second season in a row that Halifax County has
finished second and landed a home game in the district tournament
semifinals.
Last year, the Comets hosted Cave Spring and its standout J.J.
Redick in the tournament semifinals and lost to the Knights who
went on to win the Group AAA state title.
Comets coach Garrett Dillard says he is glad to have the opportunity
for his team to play a semifinal game on its home floor.
"We have great fans," said Dillard.
"The Comets Crazies are great and we're going to appreciate
the home court advantage.
"But, we can't look at it like we're going to win just because
we're at home," added Dillard.
"We've still got to come out and play and we've got to play
even harder because we are at home."
On paper, it appears the Comets got the best draw.
The Comets' win last Friday night over GW put the Comets in second
place and dropped GW into a tie for third place with Franklin
County.
Franklin County, (10-6 overall, 3-5 district) won the tiebreaker
and was awarded third place.
GW was ranked fourth in the final standings and has to host E.C.
Glass tonight in a play-in game with the winner advancing to Thursday
night's other semifinal game against Patrick Henry in Roanoke.
Dillard agreed that the Comets got a good draw in the tournament
pairings, but not just because Halifax County doesn't have to
face GW for a third time.
"It's not about not having to play GW," explained Dillard.
"It's about not having to play the same team back-to-back.
That's my biggest concern.
"Although we just played Franklin County, there was a game
between that game and this one and we're able to get off of that
emotional high from beating GW," added Dillard.
"We lost to Franklin County and we didn't play well doing
it. Hopefully, we will come out focused and will play much better
against Franklin County than we did the last time."
Dillard said his team has every reason to get itself focused and
ready to play.
The primary point of focus is that this game is an elimination
game.
If the Comets want to have a chance to extend their season and
have a shot at getting into the Northwest Region playoffs, a win
over Franklin County is a must.
"This is a "must win" game," Dillard said.
"This is an elimination game. There can't be any excuses.
If we don't play well, the season is over and we don't go anywhere."
The fact that Thursday night's game is a "must win"
game for the Comets could be to their advantage.
When the Comets faced E.C. Glass in Lynchburg on January 30 and
won, it was a big game as it vaulted the Comets to 3-1 in the
district.
Then, after having lost to Franklin County, the Comets had another
"must win" game, the one here against GW last Friday
night, as a win in that one would secure second place in the district
and a home game in the district tournament.
"We had to win that game because we had games against GW
and PH right after that," said Dillard.
"We didn't want to go up against them with a loss to Glass.
Then we had the big win over GW. If we hadn't won over GW, we
would have found ourselves in the play-in game.
"Those were two games that we had to win this year and we
did," added Dillard.
"Franklin County is a game that we must win if we want to
extend our season."
In the February 12 loss to Franklin County at Rocky Mount, Franklin
County used a zone defense in an attempt to slow down the Comets'
offensive machine.
The Eagles made it work as Halifax County made only 14 shots from
the floor and lost by seven points after cutting a 17 point deficit
down to four points late in the game.
"Those guys (Franklin County) did a good job of beating us
up there," said Dillard.
"We had been scoring in the 60's and 70's and they did a
good job of keeping us in the 40's. You're not going to beat anybody
making just 14 shots, no matter how good of a defense you play."
Dillard said he will prepare his team for the likelihood that
it will see Franklin County go into a zone defense once again
Thursday night.
"We're not going to make a lot of changes," said Dillard.
"We're going to play our up-tempo pressure defense. At the
same time, we're going to be prepared to shoot the ball well against
their zone defense, knock down some shots, and, if the opportunity
presents itself, pull Franklin County out of the zone."
Dillard said the fact that the winter storm that coated the area
with ice has pushed the tournament schedule back a day won't make
a lot of difference for his team.
The Comets, like a lot of other teams, have had to play numerous
make-up games this season.
"Something like 25 to 35 percent of our games have been make-up
games," noted the Comets coach.
"I'm a very impatient person. I think I'd have rather played
Wednesday night (as originally scheduled) whether we were prepared
or not.
"We're going to be prepared to play Thursday," he added.
"We're going to practice today (yesterday) and, hopefully,
school will be back in session tomorrow (Wednesday).
"We can get another practice in tomorrow (Wednesday) and
have a shoot-around Thursday," Dillard continued.
"We'll come out focused, ready to go and play Hali-Heat Basketball."
If the Comets defeat Franklin County Thursday night, they will
advance to Friday night's district tournament championship game.
If Patrick Henry (8-0 in district play) wins its Thursday night
semifinal game and the Comets win Thursday night, the Comets will
be assured of a berth in the Northwest Region Tournament.
However, if Patrick Henry loses Thursday night and the Comets
win Thursday night, the Comets will host the tournament championship
game on Friday.
Because Patrick Henry has already clinched a berth in the Northwest
Region Tournament as a result of winning the regular-season title,
the Comets would then have to win the championship game in order
to advance to the regional playoffs.
There has been only one time in recent years in which a Western
District or Western Valley District team has gone through the
season undefeated through both regular season and district tournament
play.
GW last did that in 1998, the year in which GW won the Group AAA
state championship.
Evelyn Rogers DeJarnette died February 16 at Halifax Regional
Hospital.
Mrs. DeJarnette was born in Halifax County, the daughter of Thomas
F. Rogers and Manie Waller Rogers and was married to Harry Edward
DeJarnette Jr. She was a member of Clover Bottom Baptist Church.
Survivors include one son, H. Edward DeJarnette III and wife,
Dianne of Albany, GA; one daughter, Vicki DeJarnette Barker and
husband, Robert A. Jr. of Nathalie; five grandchildren, Ashley
Barker, Whitney Barker, Robert A. Barker III, Tracey DeJarnette,
Sarah DeJarnette; one sister, Eva Rogers Sexton of Lynchburg;
one sister-in-law, Ruby B. Rogers of Norfolk. She was preceded
in death by a son, David DeJarnette; and a brother, John T. Rogers.
A funeral service for Mrs. DeJarnette will be held today, February
19, at 3 p.m. at Clover Bottom Baptist Church with t he Revs.
Malcolm Cadd and James Crocker officiating. Burial will follow
in the church cemetery.
Golden Perry Gregory, 72, of Roxboro, NC, died February 17 at
Person Memorial Hospital.
Mr. Gregory was born in Person County, NC, the son of Dave Gregory
and Annie Chandler Gregory, and was married to Ruby McDowell Gregory.
He was a retired businessman and former play-by-play announcer
for the Minnesota Twins.
Mr. Gregory served in the Army during the Korean War, attended
Surl Primitive Baptist Church and was an Iron Duke for many years.
In addition to his mother and wife, survivors include one daughter,
Pam Dollar of Durham, NC; one son, Bruce Gregory of Durham; five
stepchildren, Joy McDowell Childress of Durham, John McDowell
Jr. of Roxboro, Ronnie Thomas McDowell of Halifax, Keith A. McDowell
of Cluster Springs and Tricia McDowell Davis of Roxboro; 14 grandchildren
and three great-grandchildren.
Funeral services for Mr. Gregory will be held at 11 a.m. today,
February 19, at Brooks & White Funeral Home Chapel in Roxboro
with Elder C.B. Davis Jr. officiating. Burial will follow in Surl
Primitive Baptist Church Cemetery.
Those wishing to give memorials are asked to consider the American
Diabetic Association, 3109 Poplarwood Ct., Suite 125, Raleigh,
NC, 27604.
Mildred Clay Hailey, 73, of 4159 Hog Wallow Road, Nathalie, died
February 17 at Lynchburg General Hospital.
Mrs. Hailey was born in Pittsylvania County on May 24, 1929, the
daughter of Monroe Clay and Laura Kelly Clay and was married to
Charlie Edward Hailey Sr. She was a retired employee of Burlington
Industries, Brookneal.
In addition to her husband, she is survived by one son, Charlie
Edward Hailey Jr. and his wife, Phyllis, of Nathalie; one daughter,
Elizabeth Carolyn H. Moses and her husband, Herbert, of Rustburg;
one brother, Russell Clay of Hurt; two sisters, Ruby Crews of
Hurt and Dolly Crews of Altavista; three grandchildren, Stacey
Lynn Hailey, Laura Beth Moses and Jennifer Moses. Mrs. Hailey
was preceded in death by three brothers, Cabell Clay, Stover Clay
and Grover Clay; and a sister, Lucille Shively.
Funeral services will be held at 2 p.m. tomorrow, February 20,
at Childrey Baptist Church with the Rev. Rodney Barwick officiating.
Burial will follow in the church cemetery.
The family will receive friends this evening from 6:00 until 7:30,
at Henderson Funeral Home, Brookneal.
Hallie Barksdale Moon, 85, of Porter Lane, South Boston, died
February 16 at Berry Hill Nursing Home.
Mrs. Moon was born in Halifax County on March 5, 1917, the daughter
of the John Barksdale and Delia Barksdale and was married to Willie
H. Moon and in her later years attended Morning Star Holiness
Church and White Stone Sutherlin Apostolic Church.
Survivors include one son, Willie Long of South Boston; her daughter-in-law,
Anne Long; five grandchildren; 15 great-grandchildren; and two
great-great-grandchildren.
Funeral services for Mrs. Moon will be held February 20 at noon
at Jeffress Funeral Home Chapel with Dr. Eula Payne-Williams officiating.
Burial will follow in Rose Garden Cemetery.
The family is receiving friends at the home of Mr. and Mrs. Willie
Long, 5149 East Hyco Road, South Boston.
Mary Elizabeth Burns McFarland, 76, of 1086 Burns Trail, Halifax,
died February 16 at her home.
Mrs. McFarland was born in Clover on March 7, 1926, the daughter
of Sylear Johnson Burns and Andrew Burns and was married to Charles
McFarland.
Survivors include three sisters, Gladys Thompson, Agnes Caban
and Dolly Barksdale; and one brother, Franklin Burns.
Mass of Christian burial will be held today, February 19 at 1
p.m. at Dunn & Sons Funeral Home Chapel in Halifax with Edna
Maier, S.N.D. Celebrant. Burial will follow in the Burns Family
Cemetery.
The family will receive friends from noon until service time,
and other times at the home