Mobile City Council votes on key items for Civic Center project

MOBILE, Ala. (WPMI) — As demolition of the old Civic Center continues, plans are falling into place for the construction of a new arena.

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The Mobile City Council voted on two actions related to financing for the city and the Civic Center project on Thursday. The items are expected to help strengthen the city and provide it with more flexibility.

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The city council voted on an ordinance codifying an administrative policy that Councilman Ben Reynolds says has been in place for several years. The policy required a percentage of the budgeted general fund to remain in reserves. Reynolds called it a monumental ordinance for the city.

“2019 was the last time it was an amended administrative policy. So, they have been operating this entire time saying we are going to set 16.66% aside so that we can protect ourselves in the event of a downturn or whatever it is, and this just codifies that policy into law. I mean, we have seen that. It has put us in a good position for bond ratings. It has put us in a good position financially overall,” he said.

The council also voted on a resolution allowing the city to use tax-exempt bonds to pay or reimburse the city for expenses made relating to the Civic Center during the next 3 years. The resolution also expressed the city’s intent to issue tax-exempt or tax-advantaged bonds not to exceed $250 million to pay or reimburse capital expenditures.

“It follows state law, municipal code to allow us. I think there are some bond regulations that require us to pass such a resolution that says that when we receive bond money that we can allocate back to ourselves, the funding associated with the Civic Center that we’ve expended to this point, not that we’re going to do it. It just provides us with that opportunity. If we do not do it now, then we will not have that opportunity in the event we decide to,” he said.

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As demolition of the old Civic Center continues, construction of the new arena is estimated to cost roughly $300 million.

“I think what everybody else wants to know is, how much is it going to cost? What are these bids going to come back at? Are we capable of doing this? And I think we are. We have hired Volkert. They are experts in this field, and they are giving us the most up-to-date information that you could possibly ask for, so that we can avoid, say, when the bid comes back, seeing a much higher number than what we all expect,” said Reynolds.

The city council’s finance committee will meet next week to hear an update about the construction and financing of the Civic Center.