Posted Aug 10, 2009, 11:39 PM
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Registered User
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Join Date: Jun 2006
Posts: 476
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Saw this article on AL.com today. With the museum and that new Admiral Semmes addition, downtown will have two new fairly large scale infill developments that will make downtown that much better. Wish I was there to enjoy it.
Mobile planning to borrow $86 million for museum construction
Posted by Dan Murtaugh, Staff Reporter August 10, 2009 5:16 PM
MOBILE, Ala. -- Mobile Mayor Sam Jones plans to sell $86 million in bonds to refinance old debt and pay for the construction of the new maritime museum on the city's downtown waterfront.
The City Council has not been asked to vote on the bond issue, and at least one council member said she had reservations about taking out a loan in the midst of an iffy economy.
Jones had Moody's Investors Service rate the city's finances for an upcoming issue.
The financial service announced Monday that it will keep the city's rating of A1 -- the best it's been in recent history.
City spokeswoman Barbara Drummond said that rating was a relief for officials, who were concerned that the recession might affect Mobile's financial outlook.
"Moody's believes the city's financial position will remain stable over the near term, despite recent draw-downs of reserves," the report stated, "given a history of conservative budgeting, prudent fiscal management and a growing economic base."
Cities sell bonds to investors in order to raise a large pool of cash for projects. The cities then repay the investors, with interest, over several years.
About $63 million of the proposed bond issue would go to refinance a 2002 loan at a better rate, which will save the city $157,000, according to the Moody's report.
The remaining $23 million will go toward construction of GulfQuest, formerly known as the National Maritime Museum of the Gulf Coast.
Groundbreaking at the museum took place in April, and officials are hoping the attraction will open for business in spring 2011. The museum will include interactive exhibits, such as:
--Remote-controlled tugboats that can guide ships into port.
--A simulator that will allow visitors to navigate vessels through a virtual Gulf of Mexico and Mobile Bay.
--A hurricane simulator that will let visitors issue warnings based on changing weather information.
Any bond issue would have to be approved by the City Council.
Councilwoman Connie Hudson said Jones scheduled a meeting with her to discuss the bond issue but then canceled it. She has not heard any details.
She said she's concerned about increasing the city's debt after Jones called for across-the-board cuts in spending and a partial hiring freeze.
"When you're cutting budgets, is it a good time to borrow money?" she asked. "I can't get excited about it, let's put it that way."
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