The Laurel City Council approved a resolution this week announcing their intent to issue up to $4.5 million in obligation bonds.
With a vote of 6-0, the council during Tuesday’s meeting approved a resolution declaring the intent of the mayor and city council of the City of Laurel to issue general obligation bonds of the city in an amount not to exceed $4.5 million for recreation purposes.
This act follows a series of actions by city officials. Additionally, the city has also begun steps toward the development of a Sportsplex master plan.
On February 18 the council approved a resolution declaring the intention of the mayor and City Council of the City of Laurel to issue general obligation bonds or revenue bonds of the city for sale to the Mississippi Development Bank or enter into a loan with the Mississippi Development Bank, to be paid with a portion of the proceeds of the city’s recreation and public improvement promotion tax in the principal amount not to exceed $4.5 million. The purpose of this would be to raise money for the establishment, development, construction, furnishing, equipping and erection of recreation facilities on land located within or in proximity to the corporate limits of the city.
Mayor Johnny Magee said the bonds involve the second of the two one-cent tourism taxes that are being collected on hotels and motels in the city.
He said one-third of the second one-cent tax is designated for the support of the Magnolia Center and would have to continue. However, the other two-thirds of that one-cent tax, which was approved through a local private bill approved by the Mississippi Legislature, could be utilized for the repayment of the proposed bonds.
Magee said these bonds would be used for the second phase of the city’s proposed Eight-plex Project.
“When we approved the four mills some time back, it was for the first phase of the Eight-plex Project. That phase involved the construction of the fields,” he explained. “This would be the second phase, which would involve the parking lots, concession stands, restrooms and other items.”
Magee said the design of the first phase of the project is nearing completion. However, the city needed to determine if it is going to utilize the other portion of the second one-cent tax before “it goes off the books in June.”
Magee said the “second penny rolls off the books in June if we don’t have a designated use for it.”
According to documents approved this week, the city proposes to direct the issuance of the bonds at 9 a.m. on Tuesday, March 17 at the Laurel City Council meeting at Laurel City Hall, located at 401 North Fifth Avenue.
However, if on or before 9 a.m. on March 17, ten (10) percent of the qualified electors of the city or 1,500 people, whichever is less, files a written protest with the city clerk of the city against the issuance of the bonds pursuant to the act, then the bonds shall not be issued unless authorized at an election on the question of the issuance of the bonds. That election would have to be called and held as provided by law.
If no protest is filed on or before 9 a.m. on March 17 against the issuance of the bonds, then the bonds may be issued without an election at any time within a two-year period after that date.
Also in a separate action this week, the city approved an agreement with Neel-Schaffer in connection with the development of a Sportsplex Master plan.
Magee said the city would like to explore the possibilities of utilizing the unused property at the Sportsplex known as the former Bear Pen Creek Golf Club.
He said some of the property, which was once an 18-hole golf club, is being used for the Sportsplex expansion of its ball fields. However, officials would like to consider using the remaining portion of the property to possibly construct a 9-hole golf club.
“Several concepts for use of that property have been discussed including the development of a nine-hole golf course, an RV Park, a 5K pathway that connects to the existing facility and a few others,” according to city documents. “The city has requested a proposal from Neel-Schaffer to develop a master plan for the Sportsplex that will lay out a conceptual plan for future development to the remaining city property at the Sportsplex.”
Based on the letter agreement, the administration is authorized to execute the agreement with Neel-Schaffer in the amount of $12,000 to provide professional services for development of the master plan.
Magee said he’s hoping the city can begin the first phase of the Sportsplex project soon.