Stimpson: the city will only need to borrow around $170 million to finance the new Civic Center

MOBILE, Ala. (WALA) - Mobile Mayor Sandy Stimpson says the city of Mobile will only need to borrow around $170 million to finance the new Civic Center project, and that debt will be paid down in less than 20 years.

The Mayor made that statement in his Nightly Newsletter on Friday March 15th.

He said, based on the city’s current estimates, the cost of demolishing the existing Civic Center, building a new arena, and preparing the entire 16.5 acres site for future development will be approximately $300 million.

Stimpson acknowledged that’s a considerable number, but said he is confident the city is in a position to finance this critically important project without impacting public services or any of the regular investments in city infrastructure and capital improvements.

He described how.

The Mayor said, “Since I took office in 2013, the City of Mobile has never borrowed money to finance city operations or any project. During that time, we were also able to consolidate and aggressively pay down legacy debt. Over the past decade, we have removed nearly $190 million of debt from the city’s books and continued to grow our unassigned fund balance annually. That has led to a substantial increase in our credit rating and given us access to cash that we can invest directly into major projects like this one. Because of those funds and contributions from partners and sponsors, the city will only need to borrow around $170 million to finance the entire project. That is well within our ability to borrow and repay quickly from a debt service perspective. With a strategic financing plan, all the debt associated with the new civic arena’s construction will be paid down in less than 20 years. That will also put the city in a great position to move forward with other pieces of the Master Plan for the Civic Center property.”