NATCHEZ — A vote taken during Friday’s meeting of the Adams County Board of Supervisors approved a $100,000 loan to the Natchez-Adams County Economic Development Authority.

The loan was granted during the executive session portion of Friday’s meeting.

The money is intended to go directly from the county to the EDA and then to the St. Catherine’s Creek Utility Authority. The Utility Authority and the EDA are made of the same members.

The Utility Authority’s attorney Tony Gaylor said the loan is needed for “numerous start up expenses.”

Board President Henry Watts said the loan’s path was made such because questions of legality arose in loaning money from the county to the Utility Authority.

Watts said he and supervisor S.E. “Felter” voted against the loan while supervisors Mike Lazarus, Darryl Grennell and Thomas “Boo” Campbell voted to approve the loan.

The Utility Authority will manage the landfill and restricted areas of the Rentech site.

Their loan is to be made in two installments.

The first $50,000 is to be given immediately and the second half will be given when the county receives an additional $1.2 million from Rentech.

Rentech is scheduled to give that money to the county on July 31.

The entire loan will be made from the approximately $3 million Rentech promised the county when their land deal recently closed.

While the loan has been made, when it will be repaid is unknown.

Watts said no terms or conditions were discussed when the loan was made.

However, Gaylor described a loose time frame for the loan to be repaid.

“It really depends on Rentech,” he said.

Gaylor said the Utility Authority will not begin to repay the loan until they start working for Rentech.

And the Utility Authority cannot do any work for Rentech until Rentech begins developing their facility.

“It’s risky,” Watts said.

Watts said if anything were to prevent Rentech’s plans in the county the loan would be lost.

Watts said Gaylor clearly acknowledged that possibility in his cover letter to the board.

Watts said Gaylor’s letter to the board, explaining the loan, readily acknowledged the risk the county was taking.

Watts said in response to the loan request he offered a motion that would essentially return the land given to the Utility Authority from Rentech back to Rentech.

In exchange the Rentech would keep the $1.2 million promised to the county.

That motion, made as counter motion to the loan, failed, Watts said.

“That would have made the loan unnecessary,” he said.

Lazarus said he felt necessary to vote on the motion, in part, to protect the Utility Authority.

Lazarus said some of the money the group borrowed would be used to purchase insurance, of which the Authority currently has none.

“I feel like if somebody gets hurt out there it could come back to the county,” he said. “We’re trying to look out for the county.”