$200K proceeds going toward building note

Published 12:07 am Wednesday, July 6, 2016

The City of Andalusia will apply the $200,000 in proceeds from the sale of spec building in its industrial park toward the payoff of the note on a second spec building.

Earlier this year, the city sold a spec building which formerly housed SaeHaeSung to J&D Properties, LLC.

The city owes $278,000 on a second spec building, which currently houses Strong Steel. The building was financed through an industrial development loan offered by PowerSouth. Tuesday, the council agreed to apply the proceeds of the sale toward that note, and to take $78,000 from its capital account to complete the repayment, if cash flow would allow it.

In other business, the council:

• Agreed to authorize the final payment on the construction and paving of a road into the industrial park. Mayor Earl Johnson said the payment was delayed after a dispute arose between DMD Engineers, which oversaw the project, and the contractor, Grady Ralls and Sons. The Alabama Department of Transportation helped resolve the issue. The city’s portion of the payment due is $9,250.

• Agreed to purchase a garbage transfer truck to haul garbage to the Coffee County landfill. Since the city’s previous truck was irreparably damaged in a wreck this spring, the city’s garbage costs have increased, Director of Public Works Glynn Ralls said.

“We’re paying $47.50 per ton now,” he said. “Our costs will be approximately $10 a ton, including the driver, if we buy a truck and start hauling our garbage again.”

• Declared a 1995 Caterpillar dozer surplus.

• Agreed to replace a 20-year-old H-VAC system at the Andalusia Police Department at a cost of $5,800.