Fairhope, Alabama
TECHNICAL ISSUES ARISE
The Airport Authority met last week expecting to make a selection of a bank for refinancing its $7.4 million debt at a lower interest rate; but after hearing from chairman Joe McEnerney decided to wait to iron out last-minute problems that developed.
McEnerney said that some of the six responses to the RFP (request for proposals) did not meet all of the the specifications requested -- and that Mayor Wilson was still reluctant to sign the agreement obligating the city to give the Authority $320K/yr for the next seven years, as authorized by a city council resolution last December 22nd.
The Authority's bond attorney recommend they not proceed at this time because of the mayor's objections, McEnerney said.
According to data presented to the city council during its December meeting, the city is currently giving the Authority $428K/yr; but, since interest rates are on the way up, the refinancing agreement must be consummated by February 23rd to obtain the significantly lower rates (to save about $100K/yr).
The city's seven-year commitment is necessary to secure the new bond at lower rates.
MAYOR SEEKS ASSURANCES
Mayor Wilson did not attend this meeting but told the Times later she is uncomfortable with committing city taxpayers for seven years because circumstances may change where that much is not needed: the Authority could sell land or lease it at a high rent for instance.
She wanted appropriate escape clauses added to the agreement before she would sign it.
Council President Burrell, who is the council's liaison for this committee as well, speculated that if the mayor would not sign someone else may be authorized by the council to sign the contract, perhaps himself.
One such precedent was cited when Council President Gentle signed the construction contract for the new library back in 2006 -- after then-Mayor Kant declined to sign it (cost too much).
The Authority's bond council worried though, that all this could not be done in a timely-enough manner to meet the February 23rd deadline.
PROPOSAL CORRECTIONS REQUESTED
A motion was made and a resolution passed unanimously to ask all six bank respondents to make corrections to fully-comply with the bid specifications; and McEnerney, Burrell and Authority attorney Myrick were to consult with the Mayor, city attorney, bond attorneys, and banks involved to try to resolve the matter in time for another meeting scheduled for later this week(Thursday, 4:30 PM).
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| Chairman McEnerney at left |
TECHNICAL ISSUES ARISE
The Airport Authority met last week expecting to make a selection of a bank for refinancing its $7.4 million debt at a lower interest rate; but after hearing from chairman Joe McEnerney decided to wait to iron out last-minute problems that developed.
McEnerney said that some of the six responses to the RFP (request for proposals) did not meet all of the the specifications requested -- and that Mayor Wilson was still reluctant to sign the agreement obligating the city to give the Authority $320K/yr for the next seven years, as authorized by a city council resolution last December 22nd.
The Authority's bond attorney recommend they not proceed at this time because of the mayor's objections, McEnerney said.
According to data presented to the city council during its December meeting, the city is currently giving the Authority $428K/yr; but, since interest rates are on the way up, the refinancing agreement must be consummated by February 23rd to obtain the significantly lower rates (to save about $100K/yr).
The city's seven-year commitment is necessary to secure the new bond at lower rates.
MAYOR SEEKS ASSURANCES
Mayor Wilson did not attend this meeting but told the Times later she is uncomfortable with committing city taxpayers for seven years because circumstances may change where that much is not needed: the Authority could sell land or lease it at a high rent for instance.She wanted appropriate escape clauses added to the agreement before she would sign it.
Council President Burrell, who is the council's liaison for this committee as well, speculated that if the mayor would not sign someone else may be authorized by the council to sign the contract, perhaps himself.
One such precedent was cited when Council President Gentle signed the construction contract for the new library back in 2006 -- after then-Mayor Kant declined to sign it (cost too much).
The Authority's bond council worried though, that all this could not be done in a timely-enough manner to meet the February 23rd deadline.
PROPOSAL CORRECTIONS REQUESTED
A motion was made and a resolution passed unanimously to ask all six bank respondents to make corrections to fully-comply with the bid specifications; and McEnerney, Burrell and Authority attorney Myrick were to consult with the Mayor, city attorney, bond attorneys, and banks involved to try to resolve the matter in time for another meeting scheduled for later this week(Thursday, 4:30 PM).
Comments
If the letter to the authority attorney was read correctly, the contents of this letter would scare most lending institutions away. Should this letter, in any way, cause the airport authority to pay more in interest, due to delays, it could cost someone to pay damages to an individual or the authority or the city.
They mayor would be wise to distance herself from any individual and others that may be closely associated with any individual that is threating a suit where the city could lose money. She has a fiduciary obligation to protect the city or its assets among other issues.
During any discovery process in any lawsuit, both sides get to obtain any and all communications, among other information, donations, etcetera, etc.
People are playing with fire, the justice system is not about justice, nor is a civil court very civil, things can get real bad real fast. This is not going to be a simple suit that is a, he said, she said, judge rule and that is it, it will get very complex very fast and will become a major distraction to everyone.
I am ashamed of all of them, the mayor, the authority board, the individuals that are making threats, threats, and more threats.
The next election, they all may get elected out of office. I have never been real political, but today, and the current situation is one reason why. Also, if you need a volunteer for a committee, well, everyone needs to think twice, maybe three times first. Fairhope is losing its charm and becoming just like most of the others cities in Alabama.
Now you know why firms are turning down business in Fairhope, and why some are declining to work for the city. Besides, the newly formed positions were already filled by the mayor before they were announced.
Why did Burell receive almost twice the votes as the mayor? He had to be doing something right, and if you will do some research, the other council members that won, received about 20-25% more than the mayor except one council member, and he won in a runoff and will be a one-time council member in my opinion.
If everyone on here has all the answers then log off the computer, get up off of your butt and run for office, see where that gets you. It's easy to criticize, hard to get results.
No need for all this nonsense!
All we've done is replace one mayor that gets sued by outsiders to a mayor that gets sued by insiders...either way, it's going to cost the city money!
You're right, no need for all this nonsense!