The Orange Beach City Council is looking to borrow $50 million in bonds to fund several capital improvements.
“For the audience and those in the community, we are essentially debt free at …
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The Orange Beach City Council is looking to borrow $50 million in bonds to fund several capital improvements.
“For the audience and those in the community, we are essentially debt free at this time. We worked hard to get there but we have a list of capital projects that is a mile long and probably close to, depending on how we prioritize, between $50-$60 million,” said Mayor Tony Kennon. “With money as inexpensive as it is now, and money maybe not being as inexpensive after Jan. 20, it made sense for use to go ahead and take it and put all of these projects on a fast track and get them all done. It essentially doesn’t change our debt service that we’ve had for the 12 years I’ve been mayor,” Kennon continued.
In years past, the city’s debt payments were around $4.8 million annually. This bond issuance would be paid back over a 20-year period with annual payments around $3.28 million according to Finance Director Ford Handley. “It allows us to get a whole bunch of things done for the citizens in the city in a much shorter time frame,” Handley said.
The city plans to use the $50 million bond issue to complete the following:
- Fire Station No. 1 Complex
- Police and Justice Center expansion
- Fire Station No. 5 (construction and Power Line Road property purchase for new station site)
- Performing Arts Center at the Orange Beach High School
- Golf Cart Multimodal Path (East and West Canal Road) providing connectivity
- Mako Athletic Field House (former Utility Office) for Orange Beach Middle/High School
- Wildlife Center/Rehab/Maintenance Shop
- Orange Beach Sportsplex baseball and softball stadium and field upgrades for Orange Beach Middle/High School
- Orange beach Sportsplex football/soccer stadium conversion
- Recreation Center Adult Fitness Gym construction
- Shooting range for police training and public practice
- Kids Park Playground replacement
Restore Projects (require some upfront expenditures but most costs will be reimbursed)
- Lower Perdido Sediment Study
- Sea Turtle Rehab Facility
The council voted unanimously to allow Handley to pursue the bond money. The final approval for the bond issuance will come back before the city council in coming weeks.
