County Commission secures large bank loan
Published 12:34 pm Wednesday, June 23, 2021
By ZACHARY SEIFTER/ Staff Writer
The Chilton County Commission approved a resolution to secure a loan from Marion Bank for $10 million during its meeting on June 22.
The resolution passed by a 6-1 vote. Commission Chairman Joseph Parnell and Commissioners Jimmie Hardee, Darrell Bone, Matthew Mims, Joe Headley, Randell Kelley voted in favor of the resolution to move forward with the loan. Commissioner Allen Williams voted against the resolution.
A resolution was passed during a previous meeting on May 25 to move forward with a loan commitment from Marion Bank, this resolution accepted that commitment to take the loan.
Money from the loan will be used to purchase property in relation to the Alabama Farm Center. The commission does not have to immediately draw money from the loan though. As long as they do not draw money, they will not owe any money to the bank and will not pay any interest.
“The idea was for this to be used as a revolving line of credit, more or less,” Commission Attorney Roger Bates said. “So, that as we acquire properties, and we sell them for economic development, that the loan would be paid back down.”
While the $10 million will be used to acquire property related to the Alabama Farm Center, the commission will not be using it for such purposes immediately. The commission approved another resolution during its meeting to use money from the general fund for the purchase of the Ellison property off Interstate 65 Exit 212.
That resolution also passed by a 6-1 vote, with all the commissions voted the same way they did for the loan resolution.
The commission has leftover fund-balance money available in the general fund to make the purchase, so long as certain contingencies are met. If there are future needs in which they could have used money from the general fund, they will draw from the loan, according to Parnell.
This will keep the commission from immediately drawing from the loan and paying interest.