By By Arthur McLean Managing Editor
The Atmore City Council approved the first of two general obligation bonds to complete the financing of land purchased for a new industrial park.
The first bonds, approved Monday, will finance $1.45 million and pay off a short-term note the city used initially to purchase the property. That note is valued at $1.175 million.
By using general obligation bonds, the city was able to reduce its interest rate and extend the payment period. The bonds mature in 2021.
Dan Summer, a bond representative for SouthTrust Securities, said the bonds sold quickly, which meant investors saw Atmore as "a good investment."
The general obligation bonds require the city to post its annual audits with a clearinghouse to meet federal investment disclosure laws.
"The city is in very good financial shape," Summers said. Stan Gregory, bond council for the city said the city's low debt ration helped in acquiring favorable interest rates for the bonds.
The interest rate coupons for the bond was set at 4.05 percent.
A second set of general obligation bonds will be issued at a later date to secure financing for the rest of the property.
The land was purchased by the city for the development of an industrial park near I-65.
These are Atmore's first general obligation bonds issued in 20 years.
Atmore Mayor Howard Shell said the city is well on its way to developing the park, with existing water and sewer service in the area.
Shell said he believed both the Atmore industrial park and the proposed Tri-County Regional Industrial Park would create more employment opportunities for residents in the area.
Atmore is still studying the Tri-County park proposal and will make a decision about its involvement with that project in the near future, Shell said.
In other action, the council:
Approved a resolution supporting the 4-laning of U.S. 31 between Flomaton and Atmore.
Hear a presentation about the city's proposed community development block grant project for 2004. The city plans to rehabilitate home and provide drainage projects in District 3, in the area roughly bordered by Liberty Street, Maxwell Street and Montgomery Street.