City to pay for building

Published 12:00 am Monday, June 20, 2005

DEMOPOLIS-A building constructed four years ago in the Demopolis Industrial Park’s failure to sell will mean an unfortunate expense for the city over the next four years. The council passed Resolution 2005-37 Thursday night, which would acknowledge the city’s obligation to pay the balance of the building if it were not sold.

Demopolis Mayor Cecil P.Williamson said this was not an unexpected expense for the city. Their obligation to help with costs was in the original plans put together four years ago.

“IDB built a state building out in the Industrial Park and Alabama Power funded part of that building,” Williamson said. “That was four years ago and their funding was based on that we would have sold the building by now. We have not done that and we need to pay Alabama Power.”

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Williamson said it was now time for the city to do their part. She said the project would be expensive, but the funds were already adjusted into the budget. The city chose to pay the $58,000 as opposed to the bottom line in order to preserve other projects.

“We need to do our part,” Williamson said. “We have $58,000 in the budget to pay for the building, but we owe another $216,000.”

The council plans to borrow the money to pay $58,000 a year over the next four years. However, if the building sells in that time, the funds brought in will also help with the payments.

The payments will be made in late May or early June of 2006, 2007, 2008 and 2009.

The only other option was to pay for the building completely, which was not feasible at this time.

Council member Woody Collins said after evaluating the situation it looked to be in the city’s best interest to go through with the Resolution, borrow the money and pay the building off over the four-year period. Collins said the city had several projects in the works and borrowing the money and making payments would be the best way to preserve those projects.

“In looking at the budget we have a lot of things going on and a number of projects outstanding,” Collins said. “I recommend we borrow this money.”

The council voted unanimously to pass and sign the resolution.