“The short-term line of credit is for the construction costs associated with the state-funded improved access grant,” Mayor Rusty Jessup said.
The short-term line of credit is through Metro Bank.
City officials made a presentation before the Alabama State Industrial Access Road and Bridge Corporation board of directors in Montgomery last week, and were tentatively approved for $1,080,000 for improved access to a manufacturing site off Vanick Road. The funds will go to the addition of a third lane, to a portion of U.S. 78 and provide better access to the manufacturing site.
“With the short-term line of credit, the city will pay contractors and be reimbursed by the state,” Jessup said.
Councilman Rob Hayes asked if the city would pay interest on the line of credit, or if the state would reimburse that as well.
“It’s a zero-match grant, but we won’t be reimbursed for the interest,” Jessup said. “But the rate is three-and-a-quarter percent, so I don’t think it would run more than $1,000.”
Jessup said it would be a short turnaround time between the city paying contractors and receiving reimbursement from the state, perhaps four to six weeks.
City officials said the improved road access was needed in the negotiations to bring Nufab Rebar LLC to Riverside.
Jessup said Nufab has not officially announced they will locate in Riverside.
The city has agreed in principle to a tax abatement for Nufab, which is a fabricator of concrete reinforcing steel and related products.
City officials had hoped to approve the Nufab tax abatement at Tuesday’s council meeting.
“The company is seriously considering increasing the size of the building in Riverside,” Jessup said.
He said if the company increases the amount of the investment, it could change the tax abatement figures.
The council appointed the mayor to sign and authorize contracts for construction related to Nufab Rebar LLC.
The council accepted property east of Vanick Road from Metro Bank as city property.
The council also accepted a petition to vacate the old U.S. 78 on property owned by Jimmy and Peggy Calhoun at the proposed industrial site.
In other matters, the council:
• Adopted the 2012 St. Clair County Emergency Operations Plan.
• Approved and authorized the Memorandum of Understanding concerning the St. Clair County Outdoor Warning Siren System.
Contact Elsie Hodnett at firstname.lastname@example.org.