The Russell County Board of Supervisors has voted down a request – at least for now – to waive building permit fees for housing manufacturer Appalachian Highlands Housing Partners.
Early in the board’s September 14 meeting, Ernie McFadden gave an update on AHHP.
Located in the former Buster Brown building in Lebanon, AHHP will manufacture precision built modular homes. McFadden said the company will produce 90 jobs with a salary, “well north of $20 an hour.”
McFadden said the goal is to keep houses $250,000 or less.
He added that production on the Buster Brown building is expected to get underway in November with production of homes beginning in October of 2027.
“This will be a dream come true for many families living in our community,” McFadden said.
David Eaton, chairman of the board, agreed, stating, “This will be a game changer for the whole region.”
Later in the meeting, Russell County Administrator Lonzo Lester referred to a letter from Rusty Little, the Finance Director of Wellspring Foundation of Southwest Virginia.
Writing on behalf of AHHP, Little stated, “On behalf of the Board of Directors of Appalachian Highlands Housing Partners, I respectfully request that the County of Russell consider waiving all applicable building permit, plan review, inspection, and related development fees associated with AHHP’s planned Modular Housing Manufacturing and Workforce Training Facility located within the County.”
The waiver would be a total of $60,000.
At-Large Supervisor Nate Kiser asked if AHHP was exempt from such fees.
Lester stated that AHHP is listed as a Limited Liability Company, meaning it could have certain exemptions. Lester said he would need to see the company’s charter before answering that question.
“I want to know that before we vote on it,” stated District 3’s Tara Dye. “It can’t just be good for them. It has got to be good for our tax payers.”
Lester pointed out that AHHP is making a $12 million investment, which could rise as high as $30 million.
Referring to the $60,000 waiver, Eaton said, “That’s a small amount compared to what they contributed to the county.”
Dye said next year’s county budget is expected to be difficult. “I don’t know how smart that is to waive that,” she said. “Other businesses come and don’t get that.”
District 2’s Lou Wallace said, “This is an opportunity to say ‘thank you, welcome to the county and bring it on.’ Why are we shutting the doors on these folks? I’m disappointed in you folks.”
Wallace then suggested closing trash drop-off sites. “Then close Finney. Then close anybody else,” she said.
When a roll call was taken on the request, Eaton, Wallace and District 5’s Steve Breeding voted in favor. Dye, along with District 1’s Andrew Hensley, voted no. Kiser and District 6 Supervisor Rebecca Dye abstained.
Rebecca Dye said she was abstaining until the question of exemptions in AHHP’s charter could be answered.
Board attorney Tyler Starnes said legally abstentions are the same as a no vote. Thus the request was denied.
“Wow,” Eaton stated following the vote. “This is a real slap in the face to this company that’s wanting to invest this kind of money and this kind of opportunity and these kinds of jobs. I’m really disappointed, I’ll be honest with you.”
“They’re going to let $60,000 hold them up on a $12 million project?” Hensley asked. “That’s a nickel holding up a dollar.”
Wallace said, “We give incentives all the time. This is not anything different. I don’t understand the thinking here. I think this is bad business. This is not business at all. It’s just bad business.
Lester said the matter can be revisited next month following a look at AHHP’s charter.