Proposed Athens rec center may cost $16–$17 million

Published 6:30 am Tuesday, February 13, 2018

Athens’ proposed recreation center is expected to cost between $16 and $17 million, depending on which, if any, add-ons the City Council approves.

Mayor Ronnie Marks revealed the cost Monday during a City Council discussion on borrowing $20 million for the recreation center, Pilgrims Pride property and a new pod of ballfields.

 They include:

• Adding six tennis courts;

• Covering the existing outdoor pool so it can be used year-round; and

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• Building a multi-use field for little league, flag football, soccer and any events that require a sodded green space with lights.

Council members will decide which, if any, of the three optional additions the city can afford to include. Their inclusion depends on the cost of the recreation center itself.

The mayor has said the city has outgrown the current 20,000-square-foot recreation center, which was built in 1977.

Four city officials plan to go to the bond market in New York on Feb. 27 and 28 to see if they can borrow the money to build a new 70,000-square-foot recreation center. In addition, they would borrow $1.2 million to cover the purchase of the Pilgrim’s Pride property and its cleanup plus borrow $1.4 million to cover a funding gap for the pod of ballfields at the Sportsplex.

There are three proposed add-ons for the recreation center, which would be built on land near the Sportsplex off U.S. 31.”IRS code requires cities to pass reimbursement resolutions to be eligible to be reimbursed for money spent before funding the recreation center or other capital improvements,” said City Clerk Annette Barnes-Threet. “If not, we can’t reimburse ourselves.”

At Monday’s meeting, the council voted 5-0 to propose issuing not less than $12 million of its general obligation warrants to cover these capital improvements. The warrants, or bonds, would be issued no later than July 1. The proceeds from the sale of these warrants would be used to fund these various projects. The agreement would allow the city to reimburse itself up to $1 million spent in the past 60 days.

Initially, the resolution called for issuing not less than $20 million. Councilman Harold Wales suggested the wording “not less than $15 million,” and Councilman Joseph Cannon said he would feel more comfortable if the wording was changed to “not less than $12 million.” The resolution passed with the wording “not less than $12 million.” The total estimate needed for the recreation center, Pilgrim’s Pride and the ballfields would be $18.6 to $19.6 million, which is very close to $20 million.

The mayor said after the meeting the city of Athens has only $12.5 million in outstanding debt, minus what the schools have borrowed. The schools will repay all but $1.8 million of the $55 million borrowed for the new high school. The City Council agreed to pay the $1.8 million from existing sales-tax revenue.

The mayor said now is a good time to borrow, because interest rates are still low.

Other business

In other action Monday, Marks said the city “got the official check” from the governor’s office for $450,000 to improve drainage in the area of Athens Elementary School. Grant Coordinator Holly Hollman and Terry Acuff worked on the grant application.

“We’ve got a lot of work to be done in that area,” Marks said of the Athens Elementary School area.

The city must pay a 20-percent match.