City hopes to borrow around $20 million for recreation, Pilgrim’s
Published 6:30 am Tuesday, January 30, 2018
Four city officials will be heading to New York next month in hopes of determining how much money the city can borrow to build a new recreation center and a new pod of fields at the recreation center.
Mayor Ronnie Marks told council members during a pre-meeting work session Monday he and Council President Chris Seibert, Councilman Harold Wales and City Clerk Annette Barnes will make the trip Feb. 26 and 27. City officials are not going to borrow the money, merely determine how much the city can borrow, much like a homebuyer asks a banker to tell them how much they can spend on a home and still be able to repay the money.
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Marks said if the city “rolls in” the Pilgrim’s Pride property off Pryor Street and creates a tax increment financing district, or TIF, to pay for infrastructure improvements related to improving the property, the city is looking at borrowing something “in the $20-million range.”
The city would repay the money over the next 20 years. Additional property and sales tax money from development would make the project feasible.
The mayor declined to estimate the cost of the proposed new recreation center because he fears whatever he estimates will become the eventual bids.
The city bought the Pilgrim’s pride property for $550,000 and plans to spend roughly $614,800 to raze the now-defunct chicken plant and any asbestos at the site. Marks told The News Courier the costs include about $1.2 million for property and demolition and $1.5 million for roads, natural gas, water, sewer and infrastructure.
Wales asked the mayor if he had gotten word on an appraisal for the existing recreation center.
Marks said a commercial appraiser from Huntsville estimated the facility, built in 1977, is worth $950,000.
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“I was hoping to get $1.5 million,” Marks said. “It is spotless but outdated.”
Marks has said Athens City Schools wants to buy the building for use as a field house.
“I have not met with them yet on a payment plan, but I will do that in the next few days to a week,” Marks said. The appraisal covers only the building, because the schools already own the land, he said.
As for the new recreation center, the mayor said the architects are “waiting for us to say we are going forward with the project, then they can look at the true costs and see what it will be.”
Wales told The News Courier the council will know which, if any, add-ons the city can afford, such as enclosing the existing swimming pool or adding tennis courts, once various construction companies bid on the project and alternates.