The pending foreclosure against the Jackson Development Corporation has been called off, the mortgage to Triple S Partnership paid in full, and the paperwork filed. However, JDC remains $175,000 in debt — but this time it’s to a private citizen.

Last week, Jackson County landholder and Sevierville, Tenn., resident James Hooper loaned the JDC the funds to pay off the corporation’s outstanding $175,000 of a $250,000 mortgage. The secured funds resulted in Triple S calling off the foreclosure just hours before the Tuckasegee Mills property, which houses QC Apparel, was to be sold at auction.

The JDC — the property buying subdivision of the Economic Development Commission — originally bought the Tuckasegee Mills property from Triple S Partnership in 2002 for $800,000, slightly more than $200,000 below the tax value. The purchase was paid for via a $250,000 mortgage to Triple S, which held the first lien against the property, and a $568,000 loan from the EDC to the JDC.

Since county commissioners first launched an investigation into EDC activity in January — action that was taken largely upon notification of pending foreclosure against the JDC — commissioners have maintained that foreclosure would result in the loss of significant taxpayer dollars that were contributed to the EDC. If the Tuckasegee Mills building ended up being sold at action, that investment would be for naught, commissioners said.

When the investigation began, the JDC had paid off approximately $75,000 of its mortgage, the last payment of $50,000 being made on Sept. 10, 2004, according to an affidavit filed with the Jackson County Clerk’s of Court’s Office in regard to the foreclosure.

Triple S held off on foreclosure until late April. EDC and JDC Chairman Tom McClure learned of the foreclosure proceedings by happenchance, appearing in the county clerk’s office to take an oath of office for his position as Chairman of the Jackson Airport Authority two days after the foreclosure papers were filed. At the time he said a private loan to cover the outstanding $175,000 was in the works, and that attorneys had simply been “dragging their heels” on the paperwork.

In a deed of trust dated May 16 — one day before the Tuckasegee Mills property was to be sold at auction — Hooper took over the first lien against the property in exchange for a $175,000 loan, issued for a one-year term at a 6-percent interest rate. With Hooper assuming the first lien, the EDC and it’s outstanding $568,000 loan remain in second place.

At an EDC meeting held the day after the agreement with Hooper was reached, McClure did not discuss the transaction with EDC members.

“Tom didn’t say anything about that,” said Sylva Mayor and EDC member Brenda Oliver.

In fact, he didn’t discuss the agreement with EDC members prior to signing papers reasserting the EDC’s second place position either.

However, lending institution officers say that while those who owe money cannot renegotiate lien holder’s places. Only the lien holders themselves may opt to switch places. The JDC owed money to Triple S and to the EDC. Arguably Triple S — though seemingly wanting their money — could have chosen to subordinate to the EDC. With Triple S paid off and Hooper holding the lien, he too could have chosen to subordinate to the EDC.

However, personal connections may have played a factor in determining lien holder status.

The “S” in Triple S stands for Sossoman — Anne Marie Sossamon Decker, Elizabeth Sossamon Eckstein and Judy Bryson Sossamon. Anne Marie and Elizabeth are cousins to Boyd Sossamon Jr., who is vice chairman of the JDC and signed the deed of trust securing the loan from Hooper. Judy Bryson Sossamon married into the family, however, lost her husband James in 1990 and has since remarried, taking on the last name Quinn.

Hooper, who owns several tracts across Jackson County, met McClure through land dealings that secured the land for Western Carolina University’s Millennium Campus. McClure’s full-time job is as Western’s director of local, state and federal government relations through the Center for Regional Development.

In a deed dated Aug. 17, 2004, Hooper and family estate attorneys executed the sale of 280 acres in Cullowhee to the State of North Carolina. Excise taxes recorded indicate the sale price was $390,000.

Meanwhile, EDC member Oliver has requested that the commission get on a schedule for a yearly audit.

“I think we need to get on a schedule and have an audit like every other governmental entity or quasi-governmental entity,” Oliver said.

EDC members — McClure, Oliver, Jay Coward, John Faulk, Jean Hartbarger and Irene Hooper — will select an audit firm at next month’s meeting, as well as review the commission’s budget, revise bylaws and elect new officers. The meeting will be held Monday, June 27 with a work session beginning at 4:30 p.m. and a regular meeting at 5:30 p.m.