Gulf Shores using windfall to pay off debt

BY JOHN MULLEN johnm@gulfcoastmedia.com
Posted 12/14/16

GULF SHORES, AL — The city is using several financial windfalls from 2015 for an early payoff a loan for some capital improvements in 2014.

Some of the money were from increased revenues, one …

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Gulf Shores using windfall to pay off debt

Posted

GULF SHORES, AL — The city is using several financial windfalls from 2015 for an early payoff a loan for some capital improvements in 2014.

Some of the money were from increased revenues, one was a BP legal funds payout from the Alabama Attorney General’s office and another source was the payoff from Pelican Place Shopping center.

In other recent action the council OK’d spending of $861,000 for design and engineering for Phase 1B and Phase 2 of the Beach Revitalization Project, approved a planned unit development on County Road 6.

Several tax streams are up from 2015 collections due to increased revenue, primarily tourism related, Financial Director Cindy King said. Among increases in sales taxes, lodging taxes and business license fees, there was a total of just more than $1 million in increases.

The building boom that started in 2015 generated an extra $272,565 of revenue. That is expected to increase again as the boom blossomed in 2016 with 178 single family building permits issued through September.

This is in addition to a 78-unit condominium project, Abaco, going up on West Beach and a hotel planned on the north side of the road in East Beach.

One-time settlements for BP legal funds held by the state AG’s office of $271,582 and $1,031,546 for the Pelican Place payoff were also received. The combination of increased revenues during 2015 and one-time settlements total $2.6 million giving the city the ability to pay off debt early.

The loan being paid off helped pay for two fire trucks, two brush trucks, two bucket trucks, paving the Cultural Center Parking logs, Bodenhamer and Sims Park improvements and street resurfacing, among other projects.

On the new subdivision, the city authorized the reactivation of the Colonial Traditions planned unit development on the northwest corner of the intersection of Alabama 59 and County Road 6. The development received preliminary approvals for a potential of 1,208 homes and multi-family units on 178-acre former site of Woodlands Golf Course.

The city asked for improvements to the intersection of Alabama 59 and County Road 6 and the developer agreed make three modifications.

Developers will construct a southbound right-turn lane on Alabama 59 to County Road 6 West with a minimal length of 300 feet with the final design to be approved by the Alabama Department of Transportation and the city.

Additionally, the developer agrees to construction additions lanes on County Road 6 from the entrance of the subdivision, or Colonial Parkway, to Alabama 59.

The city continues to move forward with the Beach Revitalization Project at the public and another city-owned lot.

Design costs for Phase 1B and Phase 2 will include a design for an empty city-owned beachfront lot between Regatta condominiums on the east and the Phoenix All-Suites Hotel on the west.

Construction is now underway at the west end of Gulf Place and should be completed before the start of the 2017 tourist season. Phase 1B and Phase 2 construction will begin in the fall of 2017.