City finalizes land purchase

Published 11:19 pm Wednesday, October 13, 2004

By By Arthur McLean
The City of Atmore added to its land holding at the intersection of I-65 and AL 21 Monday.
The city closed on a tract of 235 acres north of the interstate and reaffirmed its financing deal with First National Bank at the council meeting Monday.
Atmore secured the financing to acquire land for its proposed industrial park near I-65 in February.
The council unanimously approved $3.98 million in general obligations bonds for the final land purchases to create the industrial park.
The bonds will have a term of 25 years and have a floating interest rate. The city's initial interest rate on the bonds will total 2.15 percent. SouthTrust bank is providing the financing.
Councilman John Garrard abstained from voting on the financing, because he sits on First National's Board of Directors.
Portions of the money were earmarked for capital improvement projects within the city, said Mayor Howard Shell.
The Atmore City Council approved the first of two general obligation bonds Feb. 9 for the first round of land purchases.
The first bonds will finance $1.45 million and pay off a short-term note the city used initially to make the first land purchases.
That noted 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 first series of bonds mature in 2021.
The city's total amount of purchases is expected to cost $3.75 million, with the city financing more than $5 million in total general obligation debt.
The total amount of land purchased for the project will total more than 640 acres of land. Included in the financing documents is a resolution officially designating the area as an industrial area.
In other action, the council:
Approved the ECHS homecoming parade scheduled for Oct. 14.

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