WINNSBORO – In 2017, Fairfield County provided $500,000 to Fairfield Behavioral Health Services (FBHS) to help fund the construction of a new facility on the US Hwy. 321 bypass.
The funding was structured as a no-sale facility loan, meaning the money would only need to be repaid if FBHS were to sell the property within 25 years. There were no requirements for interest, repayment installments, or a maturity date—only the condition that repayment would be triggered by a sale or transfer.
At Monday night’s council meeting, FBHS Vernon Kennedy formally requested the county forgive the loan by converting it into a grant. They explained that doing so would remove the $500,000 liability from their balance sheet, helping their financial statements reflect a cleaner and stronger position.
Kennedy emphasized Behavioral Health’s 50-year track record in the county and confirmed they have no intention of selling, subleasing, or vacating the facility, which they own outright.
County Administrator Vic Carpenter and County Attorney Tommy Morgan confirmed that the original agreement was intentionally flexible, and that the County could call the note at any time—but it was not considered a traditional loan.
Despite the reassurance and long-standing partnership, council members expressed concern over setting a precedent, especially considering the facility was originally expected to be fully funded by the State, and potentially waiving the county’s ability to recover funds if circumstances were to change.
Council voted 3-3 to convert the $500,000 loan to a grant. A tie vote counts as a failed vote.
